Foreign Relations of the United States, 1964–1968, Volume XV, Germany and Berlin

257. Telegram From the Embassy in Germany to the Department of State¹

Bonn, April 3, 1968, 1838Z.

10380. In my first official call on Ministry of Defense State Secretary Von Hase, on April 1, we spent an hour discussing several subjects of current interest:

1. Vietnam—Von Hase made the obvious observation that the bombing cessation now puts the matter of negotiation and peace squarely up to Hanoi. He alluded to the Stern article re the alleged pronouncements of Vice President Ky and indicated interest in what we may discover as to the accuracy with which Ky was actually quoted.² Separate verification action is underway.

2. Stockholm financial meeting—Von Hase indicated that the German Government has no reservations with the conference resolutions and the communiqué.

3. Neutralization of troop costs—

A) German postponement of financial talks—Von Hase was not familiar with the recent delay proposed by the German side. In response to my statement that we could not understand it and that if additional governmental meetings were required the Embassy stood ready to conduct them. He volunteered to inquire into the matter with the Foreign Ministry and advise.

B) Long-term solution—Min Schroeder, in a recent speech, alluded to the desirability of a “long-term solution” to the problem of neutralization of troop costs. Von Hase said that Schroeder had no specific solutions in mind; rather, he recognized the disadvantage of annual airings of the problem and simply felt it would be to everyone’s advantage to work out a long-term solution—all of this seemingly with full recognition of the necessity of facing the problem of neutralizing our troop costs.

4. German procurement decisions—

A) Multi-role aircraft 1975 (MRA–75)—Germany needs one strong partner to develop and produce the MRA–75 (This is the new title given to the Neues Kampfflugzeug—NKF). This is necessary because all of the German aircraft industry together is to the French aircraft industry as 1:3, to the British 1:6 and to the US 1:35. The Germans require this strong partner not only to help in the development of the aircraft but also to participate in selling it. The MRA–75 aircraft, being down the road, leaves a void in work for the German aircraft industry in the meantime. Filling this void is one of the main considerations involved in the F/RF 4 vs. F/RF 104 “gap filler” decision.

B) Aircraft buy decision—Decision on the “gap filler” aircraft is expected in May, with Parliamentary deliberations to begin after Easter. Acceding that the F/RF 4 is the best aircraft from the military point of view, Von Hase personally obviously leans to the F/RF 104 from the standpoints of German industry, politics, logistics and cost.

C) Helicopter decision—The Germans have firmly decided that helicopters are required to enhance the mobility of their ground forces. Parliamentary deliberations on the helicopter decision will go hand in hand with those on the “gap filler” aircraft.

D) Pershing 1A—The Germans definitely intend to buy the improved Pershing 1A missile system—perhaps not the full 72 but close to it.

5. Main battle tank 70—Von Hase expressed satisfaction with the recent main battle tank 70 developments which insure the continuation of the joint development program, including the solution to the funding of the program. He mentioned the psychological and combat advantages which will accrue if our forces who are standing ready side by side in Germany, have the same tanks.

6. Forthcoming SecDef/Minister of Defense meeting—Von Hase placed great importance on the two Ministers getting to know one another. He agreed that the meeting now being arranged for The Hague should be quite informal, a “get acquainted” meeting, however, he is anxious to see the resumption of the semi-annual SecDef/Minister of Defense meetings. For the first semi-annual meeting with Mr. Clifford the Germans did not intend to be “protocol conscious” and would be quite amenable to conducting it in Washington in consideration of plans for Secy Clifford’s present responsibilities. He hoped that the plans for the first of these semi-annual meetings could be firmed at the Ministers meeting in The Hague.

7. Mutual force reductions—Von Hase affirmed that the Germans continue to have a keen interest in the general subject of mutual force reductions. They tend to look on our troop rotation as “advance reductions”—to eventual mutual force reductions. He agreed that such actions create a rationale for the Soviets to take comparable actions. There is a German group under the chairmanship of Gen Heusinger studying this subject. Von Hase promised to provide us with a summary of their conclusions up to this point.

McGhee

1. Source: Department of State, Central Files,POL GER W–US. Confidential; Priority. Repeated to the Secretary of Defense and USCINCEUR.
2. The article, which appeared in the April 7 issue of Der Stern, pp. 24–25, 251–253, carried the title “Ja, ich bin Korrupt aber woher haben denn die Kennedys ihr Geld?” (Sure, I’m corrupt but how did the Kennedys make their money?)