President: Can I start with the idea that we are dedicated to their survival and want to insure it but we have to have progress in the negotiation coming up? We have things to consider -- we don't want a war, or an oil embargo. He must realize we have problems on Congressional backing, inflation and the budget; we can't strip our forces to oversupply them. Is that okay?
Kissinger: It will frighten him but it doesn't hurt. Nixon gave him a letter on long-term supply. I told them it had no specific meaning.
They say they need hardware to be flexible. I don't believe it. A big authorization now would rip it with the Saudis. Maybe next year, after a major disengagement.
President: Let's discuss it frankly.
Kissinger: I don't think you can go beyond the first two packages and we will discuss the rest now.
President: We are committed to the long-term, but we can't put a dollar figure now.
Kissinger: They are saying if they don't get something they will go into a confrontation. He needs something.
There is a need for progress toward peace -- that is compatible with Israeli security. You can say the spirit of the last negotiations will be continued.
SECRET/NODIS/XGDS
