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. Now let me turn it over to Henry and then I hope for a frank discussion.
Kissinger: I strongly support the President's statement about the opportunities we face in foreign policy. There is new leadership in Europe, and with our new situation, it has created a new atmosphere. 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. If we bug out of Vietnam, it would affect our whole foreign policy and the reliance that countries can place on us. If the amounts are too small, it matters little whether it is barely too little or much too little. In MAP, you know the requests and the appropriation.
President: I was discussing this a day or so ago. A soldier on patrol normally carries 8 grenades. Now they carry two. What does that do to the soldier's morale. Their morale inevitably sags and that at the least unsettles the situation in South Vietnam.
Kissinger: It is a vicious cycle. The psychology is as important as the military situation. Until June they felt good. Then their ammunition was reduced and their morale sagged. Then they gave up some outposts and their morale dropped more.
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.
We realize the funds are agreed.
Mahon: There is one area, though. There is $77 million for the F-5's which can be used.
CONFIDENTIAL
