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this capability to move rapidly to support activities contributing to peace in the area and to maintain our Support .. Mission in the Sinai.

Much remains to be done to achieve peace in the Middle East. Our efforts to generate further movement in the Middle East peace negotiations are entering another difficult and critical period. We are determined to maintain the momentum toward peace. We are currently engaged in intensive consultations with all the governments directly concerned to try to reach agreement on how to proceed. Our security assistance program, and our close, cooperative relations with countries of the region, will be as important to our efforts in the future as they were to helping us to achieve the Interim Sinai Agreement in 1975. We will continue to need the sustained, strong support of the Congress

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that has so long characterized our relations with these
nations. The MAP, FMS, and training funds requested should
help to return our mutual defense relationships to a more
normal footing, and allow both Greece and Turkey to play
more effective roles within NATO.

As you know, the Turkish Foreign Minister and I signed
a new defense cooperation agreement between the U.S. and Turkey
on March 26 which will be submitted to Congress in the near
future under a joint resolution. This agreement will replace
the U.S.-Turkish Defense Cooperation Agreement of 1969 and
will, when approved by the Congress, provide for the resumption
of our use of important intelligence facilities and installations
in Turkey. The agreement establishes the level of U.S. assistance
to Turkey during a four-year period at $250 million per year,

(ie)

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one-fifth of which will be in grant assistance, the remainder in
credit and guarantees. The implementation of this agreement
will restore the traditional U.S. -Turkish relationship within
the NATO Alliance, contribute to the settlement of problems
in the Eastern Mediterranean, and strengthen the conditions for
peace and stability in that area.

We also have key strategic interests at the western end of
the Mediterranean, on the Iberian Peninsula.

The Treaty of Friendship and Cooperation with Spain
is currently before the Senate for its advice and consent. We
engaged in extensive consultations with the Congress during the
negotiations with the Spanish Government, and decided to submit
it as a treaty largely because of the advice which we received.
This treaty is a unique agreement which encompasses both a

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closer relationship with Spain and an agreement for the use
of facilities in Spain in exchange for a five-year program of
assistance. We consider this a particularly significant agreement
which serves U.S. interests in the Atlantic area and supports
Spain at a time when it is moving into a new era in its domestic
and international activities. We have suggested to the Senate that
a Joint Resolution for authorization might be appropriate. We
request that the Congress take whatever measures are necessary
to authorize the funds in the treaty.

In regard to *Portugal*, the supporting assistance funds
which we are requesting will contribute to its ability to
deal with massive economic dislocations left in the wake of last
year's political turmoil and will help to support its emerging
democratic process.

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East Asia

In East Asia, we are continuing our security relationship
with the Republic of Korea. As a result of Korea's continuing
economic progress, we are terminating our grant material
assistance program after FY 76 and are now requesting only
those MAP grant funds needed to deliver material previously
funded under MAP. [ If we receive the FMS funding levels requested
in our FY 77 program, we will complete the joint US-ROK
modernization plan begun in 1970. For its part, the Republic of
Korea is now undertaking a further five-year Force Improvement
Plan on its own initiative and with its own resources. At the
same time, we for our part expect to continue to request
significant levels of FMS guaranteed loans in support of our
mutual security objectives in Korea. ]

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We know the Committee's concerns on human rights matters. The Korean human rights situation is an important element in our policy considerations. We have strongly made known our views to the Korean Government and there should be no doubt about the concern of the US on the human rights issue.

At the same time we cannot lose sight of our basic concerns over the security situation on the Korean peninsula and its importance to the peace and security of the area. Our request is based on our own assessment of the need to maintain the military balance in Korea and is in support of our security objectives in Korea, Japan, and East Asia generally.

For Thailand we have requested continuing grant MAP and FMS credit in funds. We believe the essential objectives of

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our support for Thai self-sufficiency remain valid.

## Latin America

In Latin America, the common program denominator continues to be training. We believe that training provides, at minimal cost, significant benefits in terms of working level contacts between American officers and their Latin American counterparts [some of whom may be expected to rise to positions of leadership in their respective governments].

Proposed FMS credits are modest in relation to both the purchasers' means and modernization requirements, and entirely consistent with the tendency of Latin American governments to hold defense expenditures to a low level in favor of development spending.

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## Africa

Recent events in Africa have shown that our unilateral restraint cannot prevent the introduction of arms and great power interests into this continent. [We support self-determination for the peoples of Africa, and wish to contribute to the peaceful resolution of regional conflicts.] As you are aware, I am planning to visit several African countries in the near future, which will provide opportunities to discuss with various national leaders our perceptions and evolving policies with respect to conflict areas. [Our security assistance program consists of modest FMS credits for Ethiopia, Kenya, Liberia, and Zaire. MAP is limited to Ethiopia. Low-key training efforts in these countries, plus Ghana and Senegal, would enhance our present bilateral cooperation while minimizing our military involvement.]

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## Conclusion

Mr. Chairman, I have addressed my remarks to the essentiality of our security assistance program, its place in our overall foreign policy design, and the basic criteria under which it is employed. I have focused on the area of greatest present urgency, the Middle East, and have reviewed our proposals for other regions. I am now ready to respond to your questions on these or other matters pertaining to our security assistance program as planned for fiscal year 1977.