Foreign Relations of the United States, 1969–1976, Volume E–11, Part 2, Documents on South America, 1973–1976

224. Memorandum From Secretary of the Treasury Simon to President Ford¹

Washington, June 2, 1976.

SUBJECT

• Economic Assistance to Chile in the Security Assistance Legislation

As you know, Congressman Frazier, in an attempt to express Congressional dissatisfaction with the Chilean Government’s performance on human rights issues, added an amendment in the House to the Security Assistance Bill which would limit economic assistance to Chile, at the end of this fiscal year through September 30, 1977, to $25 million. On my recent trip to Chile, the Government emphasized that they are committed to ensuring human rights, and they took some positive steps in that direction during and after my visit. In light of this progress, I have made a concerted effort to oppose any cut in economic assistance that might be added to the bill when considered by the Senate. Such a cut is being contemplated by Senators Kennedy and Cranston.

Last Thursday morning I appeared in executive session before Senator Humphrey’s Foreign Assistance Subcommittee of the Committee on Foreign Relations. Senator Javits suggested at that meeting if you would informally agree to be guided by the views of the majority of the Senate Committee on Foreign Relations prior to the granting of economic assistance to Chile, he thought the Senate would not reduce such assistance. However, I made no commitment to the Committee until I could get your views.

I request that I be authorized to advise the Senate Foreign Relations Committee that the Administration strongly believes that economic assistance to Chile is in the best interests of the United States, and therefore believes that your request for assistance to Chile must be fully authorized; that the Administration will be ready and willing to consult closely with the Senate Foreign Relations Committee before the obligation of specific assistance programs for Chile but cannot be bound by the views of the majority of a single Congressional committee.

The Security Asssistance Bill is expected to be on the Senate floor at the end of the first week in June or at the beginning of the second week in June. I need to communicate your views prior to the bill’s reaching the floor.

William E. Simon

1. Summary: With the administration’s request for economic assistance to Chile facing congressional opposition, Simon sought Presidential approval for a statement to the Senate Foreign Relations Committee reiterating the administration’s strong belief that aid to Chile was in the best interests of the United States.

   Source: Ford Library, President’s Handwriting File, Box 22, Foreign Affairs–Foreign Aid, 8. No classification marking. Ford approved the recommendation on June 2. (Ibid.) In a June 4 memorandum to the President, Connor indicated Greenspan, Lynn, Marsh, and Scowcroft concurred. (Ibid.) In a June 5 memorandum to Kissinger, Rogers indicated he concurred. (National Archives, RG 59, Central Foreign Policy File, P760092–1930) On May 30, Rogers reported to Kissinger on Simon’s meeting with the Foreign Assistance Subcommittee of the SFRC. Although Simon informed them that he had made it clear to the Chilean Government that economic aid was linked to their human rights performance, there was no support in the Subcommittee for any military assistance, including commercial sales. (Ibid., P760092–1730) A transcript of Simon’s report to the Subcommittee is in a U.S. Senate Report of Proceedings, May 27, vol. 1.