Office of the Historian

141. Memorandum From the Deputy Secretary of State (Ingersoll) to President Ford1 2

Washington, May 3, 1975

SUBJECT:

  • Waiver of the $10 Million Ceiling on Military Assistance, Credits, and Guarantees for Africa, under Section 33(b) of the Foreign Military Sales Act, as amended.

Problem

You are asked to exercise your authority under Section 33(b) of the Foreign Military Sales Act, as amended, and determine that the waiver of the $40 million ceiling established by Section 33(a) of the Act on the total amount of grant military assistance, credits, and principal amount of guaranteed loans, excluding training, to African countries in fiscal year 1975 is important to the security of the United States.

Background

The $40 million ceiling on the total amount of grant materiel and the face value of foreign military sales credits that can be provided to African countries was enacted in 1967. The proposed 1975 military assistance and credit sales programs for Africa exceed this amount. due to a combination of certain program increases and inflation.

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Because of deliveries of Soviet Arms to Somalia, Uganda, Algeria and Libya, some neighboring countries—Ethiopia, Kenya, Tunisia and Morocco—are re-evaluating their defense needs. These latter countries have requested assistance from the United States to help redress the perceived military imbalance. Our response to their requests has thus far been restrained. Because of diminishing grant funds and in order to Involve the budgetary process of the recipient, most of our proposed response would be limited to cash sales and credits under the Foreign Military Sales Act (FMS).

The aggregate of our proper grant materiel programs and FMS credit sales would come to about $65 million, not including training for six selected countries. Of this amount, about $51 million would consist of FMS credits. Waiving the $40 million would enable the U.S. Government to respond to these requests and promote our interests in areas which are politically and strategically important to us.

Legal Considerations

Section 33(a) of the Foreign Military Sales Act imposes a fiscal year ceiling of $40 million on the total amount of grant military assistance, credits, and the principal amount of guaranteed loans, excluding training, to African countries. Section 33(b) provides that you may waive this ceiling when you determine that this waiver is important to the security of the United States, and promptly so report to the Congress.

Under Section 654(c) of the Foreign Assistance Act of 1961, as amended, the waiver would have to be published in The Federal Register unless you conclude that such publication would be “harmful to the national security of the United States.” Since the requested waiver would do no mere then waive the ceiling established by Section 33(a) of the Foreign Military Sales Act for African countries generally, I have concluded that its publication would have no harmful effect on the national security and, accordingly, reccomend its publication in The Federal Register

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Congressional Considerations

There will be some Congressional oppositon to waiving the limitation on total military assistance for the African countries. We will report your determinanation to the Congress on your behalf and provide them with the attached justification, as has been our practice with previous determinations. We believe that the majority of the members of Congress will be convinced that waiving the African ceiling will be an appropriate wat to respond to the request for increased military assistance and at the same time promote U.S. national interests in politically and strategically important areas.

Recommendations:

I therefore recommend that you approve sign the attached determination and thereby approve the attached determination and therby approve the attached justification.

  1. Source: National Archives, RG 59, Central Policy Files, 1975, P750087–2075. Confidential. The attachments are not published. A typed notation at the top of the first page reads: “Pres. Determination No. 75–20 signed by President May 20.”↩
  2. Ingersoll requested that Ford sign a waiver of the $10 million ceiling on military assistance to Africa.↩