206. Memorandum From Stephen Low of the National Security Council Staff to the President’s Deputy Assistant for National Security Affairs (Scowcroft)1

SUBJECT

  • Chile Arms Transfers

After some lengthy meetings I think the Chile arms problem is under control. The understanding between me, State and Defense is as follows:

A) The 1976 FMS proposal will contain no allocation of grants or credit for Chile.

B) State agrees to begin arms sales as promptly as possible and will so indicate to Defense by means of a letter from Carl Maw to General Fish. Both Departments understand that Congressional consultation will have to precede these sales. State agrees that the objective is eventually to supply the FMS credits contracted for by the Chileans in 1975 before the restrictions were placed on them by the Congress and to add a few new items. This could amount to as much as $90–$100 million, but Defense understands that this is a goal and that we will only go to Congress with a small package in the beginning.

C) Defense would like to have its request for an SRG remain on the books. As soon as sales get underway it will formally request to have it withdrawn. Until then it understands that we will not act on it.

For the moment nothing is required of you. I will continue to follow this.

  1. Summary: Low informed Scowcroft of the particulars regarding the decision to sell arms to Chile.

    Source: Ford Library, National Security Adviser, Presidential Country Files for Latin America, Box 3, Chile 2. Confidential. Sent for information. Scowcroft wrote “OK” and initialed the memorandum. Attached is an October 9 covering memorandum, in which Rogers informed Maw that “Defense is firm that the [Chilean FMS] proposal should be vetted with some of the Congressional leadership beforehand.” (National Archives, RG 59, Central Foreign Policy File, P830108–2107) On October 11, Maw sent a letter to Fish indicating that the Department of State concurred that FMS arms sales agreed to between July 1 and December 30, 1974, should proceed, with the understanding “that actual delivery of items is to be withheld pending completion of successful joint DOD/State consultations with Congress.” (Ibid., P830108–2106)