Military Assistance Trends

September 25, 2007

"Increased military assistance as a con- comitant to the Nixon Doctrine seems inescap- able to me," a top Pentagon official told Armed Forces Journal in November, 1970.1 The events of the past two years have amply confirmed the accuracy of this prediction: U.S. military as- sistance expenditures have risen steadily since President Nixon took office, and will continue to do so if Administration policies are backed by Congress. Total U.S. military aid for Fiscal Years 1971-73 came to $15,453 mil- lion, a 33 percent increase over the $11,604 million spent in the preceding three years. 2 These increases are neceessary, according to Administration spokesmen, if the United States is to withdraw its ground forces from Asia while still assuring the survival of our client states. State Department officials have argued that certain key U.S. allies face a difficult "adjustment period" occasioned by the with- drawal of U.S. troops, and that additional grants of U.S. military assistance funds and equipment are necessary if these countries are not to succumb to revolution or internal collapse. Thus Secretary of State William P. Rogers told Congress in 1971 that the aid pro- gram "is an essential element of the Nixon Doctrine's emphasis on the primary responsi- bility of each nation to provide for its own security," and that additional aid funds are needed to provide our allies with "a foundation of stability during the adjustment period." 3 Rogers' avowal of the need for a "founda- tion of stability during the adjustment period" can be read as an endorsement of steps taken by several regimes--including those of Marcos in the Philippines and Park in South Korea--to suppress dissent and insurgency under the cover of martial law. Certainly the distribution of military aid suggests that we reward those states which "maintain stability" through the institutionalization of military rule: the most favored recipients of military aid under Nixon are Korea, Taiwan, Thailand, Greece, Turkey, Iran, Brazil, Spain and of course Vietnam. Recent Pentagon data on military assistance spending confirm another trend noted in NACLA's Latin America Report: the shift from direct grants of military hardware to credit-assisted sales. As indicated in the January 1972 Report, Third World countries are increasingly being encourage to "arm now and pay later" under the favorable credit terms of the Foreign Military Sales (FMS) program. FMS sales jumped from $614 million in Fiscal 1968-70 to $1,922 in 1971-73, an increase of 213 percent. Pentagon cash sales grew over the same period from $3 billion to $5.8 billion, a 94 percent increase. 4 While most FMS credits are going to the oil-rich nations of the Middle East, other Third World areas are not being ignored. U.S arms sales to Latin America, for instance, rose from $14 million in Fiscal 1970 to $144 million in 1972--an increase of 930 percent! In order to further expand sales to the Third World, the Administration is push- ing for the repeal of Congressional restraints on the export of "sophisticated" weapons to underdeveloped areas, and to raise the ceiling on arms transfers to Latin America. Under President Nixon's foreign aid reorgan- ization plan, the Agency for International De- velopment's Supporting Assistance program has been renamed "Security Supporting Assistance" and its military orientation given greater em- phasis.5 Security Supporting Assistance, ac- cording to USAID Director John A. Hannah, "pro- vides essential economic help to certain less developed countries threatened by internal in- surrection or external attack." Such aid is necessary, he argued, to assure the survival of shaky pro-U.S. regimes: "If these countries are going to assume greater responsibility for their own defense, they must be able to carry the economic burden of expanded armed forces and deal, at the same time, with the pressing social and economic problems typical of de- veloping countries."o The principal recipients of Security Supporting Assistance funds in the 1972-73 period are: Cambodia, Laos, Thailand, Israel and South Vietnam. Increased military assistance spending and greater Congressional vigilance of Pentagon aid programs have had a dramatic impact on the mili- tary assistance tables published by NACLA. When we first tabulated such data in the Nov. 1970 Newsletter, the worldwide total for 1946-68 came to $36 billion; now, with the data for 1969-73 added and additional military aid categories included, the total for 1946-73 comes to a staggering $83 billion! 1. Armed Forces Journal, Nov. 2, 1970, p. 22. 2. All aid data from: U.S. Agency for Interna- tional Development, U.S. Overseas Loans and Grants (1972); and, U.S. Senate, Com. on Appropriations, Foreign Assistance Ap- propriations for FY 1973, Hearings, 1972, pp. 1049-76. 3. U.S. Senate, Committee on Appropriations, Foreign Assistance Appropriations for FY 1972, 1971, p. 1284. 4. U.S. Department of Defense, Military Assis- tance and Foreign Military Sales Facts (1972), p. 14. 5. John N. Irwin, "New Approaches to Interna- tional Security Assistance," Department of State Bulletin, Feb. 22, 1971, pp. 221-7. 6. Foreign Assistance Appropriations 72, 1208.- 25 - U.S. Military Assistance Programs Cumulative Totals By Country, 1946-73 Includes aid from the following programs: I. MAP Grant Aid - Direct grants of military equipment and services (including training) under the Military Assistance Program (MAP). II. FMS. Eximbank Credits - Credits furnished by the U.S. Department of Defense under the Foreign Military Sales (FMS) program and by the Export-Import Bank (Eximbank) for the purchase of U.S. arms. III. MASF, MAAGs & Naval Loans - Includes support of our allies and mercenaries in Southeast Asia (South Korea, South Vietnam, Laos and Thailand) under the regular Department of Defense appropriations (Military Assistance, Service-Funded, or MASF), the costs of maintaing U.S. Military Assistance Advisory Groups (MAAGs) in recipient countries, and the values of naval vessels loaned by the U.S. for indefinite periods. Includes "Greek-Turkish Aid" of Truman Doctrine era. IV. Excess Defense Articles - Direct grants of military equipment from stockpiles of "excess" U.S. materiel (such equipment is valued at one-third acquisition cost for military aid purposes). V. Food for Peace Funds - Local currencies generated under the "Food for Peace" (Public Law 480) pro- gram that are allotted to defense expenditures. VI. Security Supporting Assistance - Funds provided by the U.S. Agency for International Devolopment for support of pro-U.S. governments threatened by insurgency or external attack. [By Fiscal Year - Dollars in millions] MILITARY ASSISTANCE BY CATEGORY, 1946 - 1971a III. VI. I. II. MASF, IV. V. Security MAP FMS, MAAGs, Excess Food for Support- Total Total TOTAL Region & Grant Eximbank & Naval Defense Peace ing As- Aid, Aid, AID, Country Aid Credits Loans Articles Funds sistance 1946-71 1 9 7 2- 7 3 b 1946-73 WORLDWIDE, Total 35,701.9 4,545.9 13,571.1 1,515.4 1,703.1 14,548.4 71,585.8 10.934.6 82,520.4 ,= - - - - EAST ASIA, Total 11,085.8 1,176.3 11,272.6 667.4 1,477.3 9,658.2 35,337.6 8,485.4 43,823.0 Australia - 859.7 - - - - 859.7 179.0 1,038.7 Burma 76.7 - - 4.1 - 9.1 89.9 - 89.9 Cambodia 278.5 - - 11.5 6.8 291.7 588.5 573.0 1,161.5 China (Taiwan) 2,577.3 168.5 232.6 266.7 106.8 727.4 4,079.3 218.7 4,298.0 Indochinac 709.6 - - 7.3 - 823.6 1,540.5 - 1,540.5 Indonesia 97.8 - 16.5 4.1 30.5 63.1 212.0 59.3 271.3 Japan 855.0 34.8 175.0 58.3 - - 1,123.1 30.7 1,153.8 Korea, So. 3,396.1 15.0 1,599.7 184.2 617.2 2,333.7 8,145.9 901.8 9,047.7 Laos 330.7 - 391.5 16.9 - 627.9 1,367.0 723.8 2,090.8 Malaysia 1.2 17.8 - - - - 19.0 1.0 20.0 New Zealand - 61.5 5.8 - - - 67.3 15.0 82.3 Philippines 449.9 - 181.8 23.6 9.4 145.7 810.4 49.0 859.4 Singapore - 19.0 - - - - 19.0 0.6 19.6 Thailand 588.1 - 449.7 22.5 - 393.3 1,453.6 210.2 1,663.8 Vietnam, So. 1,476.3 - 8,220.0 68.2 706.6 4,238.9 14,710.0 5,493.6 20,203.6 Region 248.6 - - - - 3.8 252.4 29.7 282.1- 26 - 1946-71 1946-71 I. MAP II. FMS, III. IV. V. VI. Sup- Total Total TOTAL Region & Grant Eximbank MASF, Excess Food for portg As- Aid, Aid, AID, Country Aid Credits ships Articles Peace distance 1946-71 1972-73 1946-73 NEAR EAST & SO. ASIA, Total 6,427.4 1,839.1 670.6 377.0 212.0 2,227.8 11,753.9 1,907.9 13,661.8 Afghanistan 4.2 - - - - 25.5 29.7 0.5 30.2 Ceylon 3.1 0.3 - - - 7.2 10.6 - 10.6 Greece 1,586.0 38.0 441.9 134.7 11.3 283.9 2,495.8 181.4 2,677.2 India 96.6 27.7 - 7.3 - - 131.6 1.2 132.8 Iran 833.3 624.0 - 20.6 10.5 205.3 1,693.7 359.5 2,053.2 Iraq 46.7 - - 1.1 - - 47.8 - 47.8 Israel # # - i - - # # # Jordan 83.3 # - 4.5 - 214.8 302.6* # 302.6* Kuwait - - - - - - - 86.0 86.0 Lebanon 14.1 # - - - - 14.1 - 14.1* Nepal 1.9 - - @ - - 1.9 - 1.9 Pakistan 672.2 10.0 8.4 8.9 79.3 589.9 1,368.7 1.2 1,369.9 Saudi Arabia 35.7 # - 0.6 - - 36.3* # 36.3* Turkey 3,029.9 - 220.3 199.3 110.9 823.6 4,384.0 285.6 4,669.6 UAR/Egypt # - - - 28.9 28.9* - 28.9* Yemen Arab Rep. - - - - - 25.1 25.1 - 25.1 CENTO/Region** 20.4 1,139.1 - - - 23.6 1,183.1 992.5 2,175.6 LATIN AMERICA, Total 790.1 302.8 250.2 66.7 - 673.2 2,083.0 197.9 2,280.9 Argentina 44.4 64.6 43.2 1.4 - 19.9 173.5 33.2 206.7 Bolivia 25.3 - - 1.7 - 162.4 189.4 15.2 204.6 Brazil 221.8 81.9 75.4 27.7 - 75.5 482.3 39.5 521.8 Chile 94.4 25.1 30.0 8.0 - - 157.5 14.5 172.0 Colombia 94.0 5.0 19.8 6.0 - 31.5 156.3 19.1 175.4 Costa Rica 1.8 - 0.1 @ - - 1.9 0.2 2.1 Cuba (1946-60) 10.6 - - 1.8 - - 12.4 - 12.4 Dominican Rep. 26.8 - 1.5 1.1 - 209.2 238.6 4.0 242.6 Ecuador 43.1 0.7 16.8 3.5 - 21.9 86.0 1.8 87.8 El Salvador 6.9 - - 0.3 - - 7.2 1.8 9.0 Guatemala 19.6 4.5 0.3 1.4 - 33.5 59.3 6.4 65.7 Guyana - - - - - 9.6 9.6 - 9.6 Haitid 3.2 - 1.1 0.1 - 47.7 52.1 - 52.1- 27 - 1946-71 1946-71 I. MAP II. FMS, III. IV. V. VI. Sup- Total Total TOTAL Region 6 Grant Eximbank MASF Excess Food for portg As- Aid, Aid, AID, Country Aid Credits Ships Articles Peace sistance 1946-71 1972-73 1946-73 Honduras 8.6 - - 0.6 - 1.6 10.8 1.9 12.7 Mexico 1.9 4.3 10.2 @ - 1.2 17.6 2.9 20.5 Nicaragua 13.6 - - 0.5 - - 14.1 2.6 16.7 Panama 4.5 - - 0.1 - 27.0 31.6 1.8 33.4 Paraguay 10.5 0.2 3.0 1.6 - - 15.3 3.1 18.4 Peru 88.8 19.5 33.0 6.8 - 1.7 149.8 7.0 156.8 Trinidad & Tob. - - - - - 29.5 29.5 - 29.5 Uruguay 43.4 4.4 3.0 4.0 - - 54.8 8.3 63.1 Venezuela 10.2 92.6 12.8 0.1 - - 115.7 28.7 144.4 Region/Other 16.7 - - - - 1.0 17.7 5.9 23.6 AFRICA, Total 294.6 63.8 6.0 18.2 3.9 471.1 857.6 88.9 946.5 Cameroon 0.2 - - 0.2 - 2.6 3.0 - 3.0 Ethiopia 163.4 - 6.0 8.2 - 3.3 180.9 28.4 209.3 Ghana 0.2 - - - - - 0.2 0.1 0.3 Guinea 0.9 - - 0.1 - 22.4 23.4 - 23.4 Ivory Coast 0.1 - - - - 0.3 0.4 - 0.4 Liberia 7.7 1.1 - 0.1 - - 8.9 3.3 12.2 Libya 15.5 - - 0.7 - 21.8 38.0 0.4 38.4 Mali 2.8 - - 0.1 - 3.5 6.4 0.2 6.6 Morocco 37.9 44.7 - 4.0 - 71.1 157.7 # 157.7* Nigeria 1.4 0.3 - - - 70.4 72.1 3.7 75.8 Senegal 2.8 - - @ - 0.1 2.9 @ 2.9 Sudan 0.7 1.5 - - - - 2.2 - 2.2 Tunisia 34.5 3.0 - 3.1 - 11.6 52.2 # 52.2* Zaire (Congo) 26.0 13.2 - 1.7 3.9 252.0 296.8 8.9 305.7 Other/Region** 0.5 - - - - 12.0 12.5 43.9 56.4 EUROPE & CANADA Total 15,911.4 1,163.9 341.9 279.0 9.9 1,316.7 19,022.8 136.9 19,159.7 Austria 97.5 47.1 - 2.7 - - 147.3 0.2 147.5 Belgium & Lux. 1,245.8 7.8 - 7.2 - - 1,260.8 0.7 1,261.5 Canada - - 13.1 - - - 13.1 - 13.1 Denmarke 617.9 - 1.4 7.0 - - 626.3 0.8 627.1 Francef 4,153.1 80.4 25.3 96.6 - 85.0 4,440.4 0.6 4,441.0- 28 - 1946-1971 1946-1971 I. MAP II. FMS, III. IV. V. VI. Sup- Total Total TOTAL Region & Grant Eximbank MASF, Excess Food for portg As- Aid, Aid, AID, Country Aid Credits Ships Articles Peace sistance 1946-71 1972-73 1946-73 Germany, W.f 900.8 50.7 0.2 - 110.8 1,062.5 2.6 1,065.1 Iceland - - - - - 25.5 25.5 - 25.5 Italyf 2,290.2 129.4 32.6 71.5 - - 2,523.7 23.8 2,547.5 Netherlandsf 1,217.0 2.2 21.3 14.7 - - 1,255.2 0.6 1,255.8 Norwaye 893.8 - 5.9 14.7 - - 914.4 0.6 915.0 Portugal 320.7 - 8.4 7.9 - - 337.0 8.9 345.9 Spain 625.8 62.3 70.6 20.6 9.9 483.5 1,272.7 68.3 1,341.0 United Kingdomf 1,034.5 809.9 - 24.3 - 187.2 2,055.9 20.0 2,075.9 Yugoslaviaf 693.9 1.5 - 9.2 - 424.7 1,129.3 - 1,129.3 Region* 1,820.4 23.3 117.1 2.4 - - 1,963.2 9.8 1,973.0 NON-REGIONAL, Total 1,192.6 1,029.8 107.1 201.4 2,530.9 117.6 2,648.5 *Excludes classified funds. **Includes amounts for classified countries. #Classified figure. @Less than $50,000. aSource: U.S. Agency for International Development, U.S. Overseas Loans and Grants, July 1, 1945 - June 30, 1971 (Washington, D.C., 1972). bSource: U.S. Senate, Committee on Appropriations, Foreign Assistance and Related Agencies Appropriations for Fiscal Year 1973 (Washington, D.C.: Government Printing Office, 1972), 92d Cong., 2d Sess., 1049-76. cConstitutes aid to French forces during Independence War of 1946-1954. dNo MAP grants since 1963. "eNo HAP grants since 1967. fNo MAP grants since 1965.

Tags: military aid, arms sales


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