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

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

Washington, June 18, 1976.

SUBJECT

• Chile Arms: Spare Parts Contract

During the Conference Committee’s consideration of the Chile arms provision, we pushed for approval of commercial sales, continued spare parts deliveries, training in progress, and pipeline. We pointed out that to cut off the pipeline would involve a $25 million bill paid by the American taxpayer. Chiefly for this reason the conference agreed to permit pipeline deliveries and training in progress. However, it specifically prohibited commercial sales and spare parts sales. When we asked them to broaden it to include sales only to the Government of Chile, thus permitting private commercial sales, they refused saying they wanted the narrowest possible interpretation placed on the provision.

The existing pipeline contracts provide for spares for one year. Defense’s desire to conclude a new contract for $18 million would provide follow-ons for this. Defense would be happy with what it could get and would be willing to accept $15 million.

We could make the argument with Congress that the spare parts they were talking about were for all equipment ever shipped to Chile. The contract we want is a small one of only $15 million which will provide spare parts specifically for the pipeline which the Congress approved. Therefore, we are interpretating our action as carrying out the will of Congress to deliver a viable pipeline package. Without the spare parts add-on it is quite possible that Chile would not accept the pipeline deliveries, the contract would be broken and the American taxpayer would have to shoulder the burden.

If we go with the new contract for $18 or $15 million we will undoubtedly get some flak. State feels it will be serious and that we will have gone a fair distance in undermining the progress made in the last year towards reestablishing trust between the Executive and Legislative branches.

Les Janka, who was involved in the negotiations on the Hill, believes that if we take a firm position on this, explaining that we believe that we are carrying out the intent of Congress and are open about it, informing Senator Humphrey of what we are doing before we do it, that we will not seriously damage our relations with the Congress.

Recommendation:

That you discuss this with Larry or with the Secretary, giving them our assessment and recommending that State agree to a $15 million spare parts contract, to be signed with the Chileans before enactment of this bill.

1. Summary: Low recommended that Scowcroft support a new $15 million contract for spare parts for the Chilean military. Although Congress had banned spare part sales to Chile and the Department of State opposed the deal, Low argued that the contract could be justified as a necessary part of the package of transfers that Congress had allowed to go forward.

   Source: Ford Library, National Security Adviser, Presidential Country Files for Latin America, Box 3, Chile, 2. Confidential. Sent for action. In the first sentence of the third paragraph, “were talking about” was crossed out and “ruled out” was written in an unknown hand. The last sentence on the bottom of the first page of the memorandum was underlined. Although no record of a Kissinger-Scowcroft meeting has been found, Scowcroft wrote underneath his approval, “Have discussed with HAK [Kissinger]. Go ahead.” In a June 21 memorandum, Ryan informed Acting Secretary of State Robinson of Kissinger’s approval of the non-lethal spare parts sale to Chile, contingent upon prior congressional consultations. (National Archives, RG 59, Central Foreign Policy File, P840037–1989)