CONFIDENTIAL
165667
MDHIAN 1121'
THAT THE ADMINISTRATION ARE CONTINUING TO PRESS THE JAPANESE FOR THE FULL DOLLARS 9 BILLION FOR US COSTS, WHICH THE ADMINISTRATION IS NOW INCLUDING IN ALL OF ITS ESTIMATES OF ANTICIPATED REVENUES. BUT WHILE FURTHER SUBVENTIONS ARE EXPECTED FRC BOTH THE GERMANS AND THE UAE, THE PROBLEM OF EXTRACTING THE FULL POUND OF FLESH REFERRED TO IN TUR IS BECOMING INCREASINGLY EVIDENT. OUR CONTACTS IN THE PENTAGON HAVE TOLD US IN CONFIDENCE (PLEASE PROTECT) THAT THE NEXT PROGRESS REPORT TO CONGRESS HAD BEEN DELAYED UNTIL MID-FEBRUARY BECAUSE ONLY DOLLARS 438 MILLION (IN CASH FROM THE JAPANESE) HAS BEEN ADDED TO THE DEFENCE CO-OPERATION ACCOUNT SINCE THE LAST DOD REPORT TO CONGRESS EARLY THIS MONTH (WHICH WAS FAXED TO EMERGENCY UNIT).
COMMENT
4 =
DESPITE THESE LATEST PLEDGES THE ADMINISTRATION THEY HAVE NOT, AS YET, CONVINCED SOME OF THEIR CONGRESSIONAL CRITICS WHO ARE PUBLICLY VOICING THEIR SUSPICIONS THAT THE US IS BEING FOBBED OFF (QUOTE THE CHECK IS IN THE MAIL UNQUOTE). NONETHELESS, THE FACT THAT THE ADMINISTRATION APPEARS ON COURSE TO COVER 75 TO 80 PER CENT OF ITS COSTS FOR BOTH 1990 AND 1991 MEANS THAT SOME OF THE HEAT HAS GONE OUT OF THE BURDEN-SHARING DEBATE HERE (GERMANY EXCEPTED) AND MAY WELL REMAIN SO UNLESS IT BECOMES CLEAR THAT PLEDGES ARE NOT BEING FULFILLED. INSTEAD CONGRESS APPEARS TO BE TURNING ITS ATTENTION TO ADMINISTRATION COST ESTIMATES WITH THE GENERAL ACCOUNTING OFFICE (GAO) ALREADY HAVING PASSED TO THE ADMINISTRATION A TWO PAGE LISTING OF THE COMPONENTS OF THE OPERATION THAT IT INTENDS TO AUDIT IN THE COMING WEEKS.
ACLAND
YYYY
ΜΑΙΝ
IRAQ/KUWAIT
LIMITED
237
ADDITIONAL
36
DISTRIBUTION
273
PAGE
MED [-]
2
CONFIDENTIAL