ECONOMIC AID FOR JORDAN

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-33-6-20-6
• Release Decision: RIPLIM
• Original Classification: C
• Document Page Count: 6
• Document Creation Date: January 11, 2017
• Document Release Date: July 17, 2012
• Sequence Number: 20
• Publication Date: May 11, 1973
• Content Type: MEMO

No Objection to Declassification in Part 2012/07/17: LOC-HAK-33-6-20-6
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DR. KISSINGER
NATIONA.L'S1E0WRI7y COUNCIL ACTION
CONFIDENTIAL (XGDS)
MEMORANDUM FOR:
FROM:
SUBJECT; f
_" e.. 'r,_ '"?r11'
954-)L
May 11, 19 73
HADf-1T.T% H SATTrm'EDS /
The Department of State has responded to your memorandum of
March 3 directing that "an effort be made. . . to help the Government
of Jordan. meet its shortage of funds before July 1, 1973. " In talks with
the King, you mentioned that we would try to advance between. $10-15
million from FY 1974 funds.. On April 18, you sent King Hussein a
backchannel message saying that "we are making our best efforts to
advance some funds from our FY 1974 Irog ram to meet your current
bwlget.needs. " You promised him an answer within the next month.
The problem we now face is that because of commitments to South
Vietnam, we have no more Supporting Assistance funds for Jordan before
July 1. In order to help Jordan as much as possible, however, State
has proposed that we provide $25 million for Jordan in July, immediately
after the beginning of the new fiscal year. [See Tab C for State's
memorandum. ], Subsequent payments of $10 million each would be made
in September and November. The possibility of another $10 million
payment in December remains open if other donors' responses are
inadequate..
Jordan has sufficient reserves to get through the next few months without
great difficulty, provided that a large payment is:-received in July. In a
recent conversation with Ambassador Brown,.. laid Rifai indicated that the
June problem is less acute and concentrated on the overall total of future
US aid? The only problem arises.from whatever commitment you feel you
have made to King Hussein to advance some funds before July i. If you
feel it necessary to give him $10.15 million in June, this amount would
have to come out of funds promised to South Vietnam. r
CONFIDENTIAL (XGDS)
XGDS - 3
DECLAS Date Impossible to Determine.
BYAUTH .. Dr.,. Henrys A. Kissinger : .
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Your choices are essentially to go along with State's recommendation,
in which case you will want to send the King the message at Tab A, or
to direct that $10-15 million be diverted from aid committed to South
Vietnam..
While it would be technically feasible to divert some funds from Vietnam
for Jordan, this would be undesirable for the following reasons:
--After the assurances given the GVN at San Clemente, a
further cut in Supporting Assistance would be a sharp
disappointment.
--If funds were to be diverted from South Vietnam, Cambodia
might be in greater immediate need than Jordan.
--While reduced Supporting Assistance for the GVN might be
made up by added Development Loan money, it is not certain
that Congress would allow FY 1973 DL money to be used in
this way.
On balance, then, the case against diverting funds from South Vietnam
to Jordan seems to be strong, especially since the Jordanians at the
moment seem relaxed on the timing of the aid as long as they would be
assured of a substantial payment in July.
RECOMMENDATION: That you send the message at Tab A to the King
notifying him that we cannot provide economic help before July 1, but
will be as forthcoming as possible early in the new fiscal year. If you
approve, General Scowcroft would sign the memo at Tab B and would
independently notify the Jordanian government.
Approve
Prefer to divert funds from Vietnam
Concurrence: Richard T. Kennedy
CQNFIDENTIAu)GDS )
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CONFIDENTIAL (XGD
Amman
FROM: WHITE HOUSE
HENRY A. KISSINGER
Please deliver the following message to King. Hussein from Dr. Kissinger:
"As.I.uoted in my message of April 18,* we have been trying to.
meet your request for additional funds before July 1. Unfortunately,.
developments? in Southeast . Asia have placed great pressures on. the
Bmited funds now available' and it appears to be impossible to, advance
nds,for Jordan as vie had hoped.. We will, however, plan to provide
Jordan with $Z5 million in. July Immediately after the beginning of our
new fiscal year, with subsequent payments of $10 million. in September
and Novem.ber.' We continue to be hopeful: that some of your neighbors
will also -be able to help you in the months ahead. Please be assured.
that we have Jordan's interests very much in mind and that we are doing
the most we can. With best wishes.#. Henry A,, Kissinger.
CONFIDENTIAL (XGDS)
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1P THE WHITE HOUSE 4
CONFIDENTIAL (GDS) June 2, 1973
MEMORANDUM FOR:
The Executive Secretary
Department of State
SUBJECT: Additional FY 1973 Budget Support for Jordan
In response to your memorandum on the above subject (S/S-7307339),
the proposal for providing $25 million in Supporting Assistance to
Jordan in July with subsequent tranches in September and November
is approved.
SdowcroTt
Brigadier General, USAF
Deputy Assistant to the President
for National Security Affairs
CONFIDENTIAL (GDS)
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 S/S-7307339
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DEPARTMENT OF STATE
April 25, 1973
CONFIDENTIAL
MEMORANDUM FOR MR. HENRY A. KCSSINGER
THE WME HOUSE
SUBJECT: Additional FY 1973 Budget Support for Jordan
Pursuant to your memorandum of March 3, 1973, we
have carefully reviewed the possibility of providing
additional Supporting Assistance (SA) to Jordan before
July 1, 1973.
The only source for such funds would be further
diversion of SA from the South Vietnam program which has
already been cut back drastically. In recent meetings
in San Clemente, Vietnamese officials were advised of
the current level of SA allocated to South Vietnam and
were assured that the USG would make every effort to
increase that level. A further diversion.of SA funds to
Jordan would not only make it impossible to maintain the
current level of allocations, but would, of course, be
.inconsistent with our undertaking to try to increase
that level.
We believe we can work out an alternative, however,
which will alleviate much of Jordan's problem without an
adverse effect on Vietnam. We propose that we provide
$25 million of the remaining $4+5 million of CY 1973 budget
CONFIDENTIAL
GDS
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support 'n July immediately after the beginning of the
new fiscal year. The GOJ may have to incur short-term
obligations to the Central Bank to get-through May and
June, but this should not be a serious problem if they
can anticipate a $25 million payment in July. Subse-
quent tranches of $10 million each would then follow
in September and November. We are also keeping in
mind the possibility of an additional $10 million in
December should other donor response be inadequate.
Theodore L. Eliot, Jr.
Executive Secretary
CONFIDENTIAL
CONFIDENTIAL
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