Foreign Relations of the United States, 1964–1968, Volume XXIV, Africa

135. Telegram From the Department of State to the Embassy in Morocco¹

Washington, May 30, 1967, 12:32 p.m.

204894. Joint State/Defense message. Subject: $14 million credit sales package. Ref (A) Rabat’s 5204, (B) State 150173.²

1. As Embassy aware decision approve $14 million credit sale was based on (a) King’s specific request for “tank and anti-tank equipment,” and (b) JCS concept of balanced improvement of GOM defensive forces. Point is that an increment of tanks was requested and was a basis for approving the $14 million level. We could not now agree to GOM proposal use all of the available $14 million for other items without having provided for its tank requirement. This would either leave the requirement neglected or lead to a request for a second sales package which we are not prepared to consider.

2. Guidance for conducting discussions with GOM provided in reference B still valid: (a) that the objective of the sales discussion is to provide, within $14 million available, greatest relative defensive capability compatible with existing Moroccan logistical/maintenance systems, (b) that we are not prepared provide equipment beyond Moroccan capacity to use and maintain for defense purposes, (c) that we are not prepared to approve Moroccan requests for equipment items and quantities substantially different or larger than JCS package, and (d) that follow-on support requirements for items in the credit package (as well as current inventory) should not be included in $14 million package.

3. The quantities of items proposed reference A are in excess GOM needs (particularly number C–119G aircraft) and would not provide greatest relative defensive capability.

4. At your discretion you may wish call upon above in explaining to GOM we cannot agree its proposal per reference A. While we believe M–48A1 tank would meet GOM requirement, we do not wish force it upon them and would, therefore, be willing set aside $5 million of $14 million total to accommodate tank and logistical support requirement at later time. Only feasible alternative we see on horizon is M–48A3 (diesel version M–48A1) which, depending SEA developments, could possibly be made available in 25 months (without radios and ancillary armament) at about $150,000 each basic cost vs $43,742 for M–48A1 (as indicated letter offer). None could be made available in less time. (We intend convey same General Driss during visit.)

5. In view of the difficulties experienced thus far in obtaining agreement on itemization and in view of fast approaching end fiscal year, every effort should be exerted obtain GOM agreement on basic memorandum of understanding regarding credit. Following (para 6) is text unclassified Memorandum of Understanding that should be signed by appropriate representatives Ministry of Defense and MUSLO. Terms offered are same as 1965 F–5 sale. Detailed credit arrangements and implementing sales orders will be entered into later pursuant to the classified military assistance agreement of June 29, 1960, which includes certain necessary undertakings and carries Circular 175 authority.

End Secret Begin Unclassified.

6. “Memorandum of Understanding—In order to assist the Government of Morocco in financing the purchase from the Government of the United States during the United States fiscal years 1967 and 1968 of such defense articles and defense services as may during that period be mutually agreed, the total estimated cost of which will not exceed $14,000,000, the Government of the United States agrees, subject to the provisions of the Foreign Assistance Act of 1961, as amended, and acts amendatory or supplementary thereto, to extend credit to the Government of Morocco of not to exceed $14,000,000 on terms of repayment over 10 years and interest at the rate of 3 per cent per annum on the unpaid principal balance of each order. Detailed credit arrangements and implementing sales orders will be entered into from time to time during the aforesaid period by duly authorized representatives of the two Governments.

(signed)

(Ministry of Defense)

(signed)

(MUSLO)”

Rusk

1. Source: Department of State, Central Files, DEF 19–8 US–MOR. Secret. Drafted by Bader in DOD/ISA and Spicer; cleared by Commander Peters in JS/SAMAA, Legner in DA/DCSLOG, McCall in AFR/NA, Shaw in PC/MAD, Colonel Hazam in OSD/I and L, Gardner of Treasury, Forman in OSD/GC, Rabida in G/PM, Allen in INR/RAF, Feigl in ISA/ILN, Goldstein in ODMA, Malmborg in L/E, Runyon in L/AF, and Nilsen in L/T; and approved by Root. Also sent to CHMUSLO Rabat and repeated to USCINCEUR.
2. Telegram 5204 from Rabat, May 23, reported that the King wished to present a revised list of military material that the Moroccan Government wished to purchase under the $14 million credit sale. (Ibid.) Telegram 150173 to Rabat, March 7, which provided guidance for discussions with the Moroccan military in developing a mutually acceptable credit sale, emphasized that the objective of the sale should be to provide the greatest relative defensive capability compatible with existing Moroccan logistical/maintenance systems. (Ibid.)