Gerald Ford

“ The Soviet Union has gone out of its way to create a good atmosphere. In SALT we are facing the best prospects we have faced in some time. In the Mideast we are facing a difficult negotiation. It is difficult to phase them to show progress and prevent a blowup. We are pursuing a low profile with Greece and Turkey because passions run so high; we want to nudge them to negotiate so we will not be blamed for a collapse. We are making progress though. This is by way of background:
In Southeast Asia, there is the problem of money and restrictions. ”

“ We think North Vietnam is on the brink of deciding whether or not to go the military route. To the extent we cut back, we encourage military action.
It is not a matter of economizing -- we don't have enough. We have done what we can. Unused equipment disintegrates rapidly. ”

“ I want to talk on this problem for a minute and then Henry will talk. I meet with Henry every morning for over an hour. We face a number of difficult problems over the world. Whether it is Southeast Asia, the Middle East, or another part of the Mediterranean -- Greece and Turkey, where Henry is in daily contact with Greece and Turkey -- or the relationship with the Soviet Union where we are laying the groundwork for SALT and trade, or with Western Europe where we're trying to bring close cooperation, we are faced with problems and tough decisions. ”

“ In aid assistance there is a problem. We must assure that what we are trying to do in Vietnam is not destroyed through lack of funding or that our hands are not tied in using those funds. There are amendments which would limit me in emergencies. We need flexibility and an adequate amount of money. ”

“ There is a prospect of increased military activity in Vietnam, and also in the Mideast. We went through a crisis in Cyprus. We hope there won't be anything else, but we must be prepared in case there is. ”

“ On the economic side, the funds are totally inadequate. We gave a 5-year program and we said the worst way is to give just too little because you can never get a process of growth. $600 million is the minimum to stabilize the situation. At the levels now the situation will be seriously jeopardized. Food and fuel costs have risen tremendously. This has to do with political stability. In June we were impressed with Ambassador Martin's report of progress. Now the impact of these cutbacks is turning the situation around. The situation is a disaster. ”