ARTICLE VI

In view of the contribution the use of the facilities mentioned in Article V makes to the defense of the West, the parties, through mutually agreed steps, will seek on the basis of reciprocity and equality to harmonize their defense relationship with existing security arrangements in the North Atlantic area. To this end, they will, periodically, review all aspects of the matter, including the benefits flowing to those arrangements from the facilities and make such adjustments as may be mutually agreed upon.

ARTICLE VIII

In order to facilitate the withdrawal of the personnel, property, equipment and materiel of the Government of the United States of America located in Spain pursuant to Article V of this Treaty and its Supplementary Agreements, a period of one year from the termination of the Treaty is provided for the completion of withdrawal which will begin immediately after such termination. During that one year period, all the rights, privileges and obligations deriving from Article V and its Supplementary Agreements shall remain in force while United States forces remain in Spain.

An Agreement in Implementation of the Treaty of Friendship and Cooperation between the United States and Spain and 15 procedural annexes were signed on January 31, 1976 (TIAS 8361; 27 UST), and entered into force on September 21, 1976, simultaneously with the treaty. (Two other procedural annexes remained under discussion at the close of 1976.) The annexes regulate the status of U.S. forces in Spain and the use of facilities there. The agreement in implementation provides definitions of terms and sections on administrative and military matters, criminal jurisdiction and claims, labor matters, and customs and fiscal matters. The procedural annexes contain detailed provisions on the following subjects:

Procedural Annex I - Command, Security and Administration of Spanish Military Installations

Procedural Annex II — Military Personnel and Discipline in the U.S. Armed Forces

Procedural Annex III - Passports and Identification Documents for United States Personnel in Spain

Procedural Annex IV - Drivers' Licenses

Procedural Annex V- Registration of Motor Vehicles of Members of the United States Forces

Procedural Annex VI - Rules Governing Medial Services of the United States Forces in Spain

Procedural Annex VI- Rules Governing Medical Services of the United States Forces and Regulation of Air Movements of Such Forces

Procedural Annex VIII - Use of the Rota Naval Base by United States Forces

Procedural Annex IX-A - Rules Governing Visits of United States Vessels to Spanish Ports

Procedural Annex IX-B – Rules Governing Visits of Spanish Naval Vessels to United States Ports

Procedural Annex X - Communications and Electronics

Procedural Annex XI - Petroleum Products Pipeline and Inland Terminals (text under discussion at close of 1976)

Procedural Annex XII - Base Petroleum Facilities (text under discussion at close of 1976)

Procedural Annex XIII Rules Governing Construction Contracts with Spanish Contractors

Procedural Annex XIV - Insurance Covering Civil Liabilities of Employees of Contractors and Subcontractors of the United States Forces and Other Civilian Personnel as Provided in Article XXIX of the Agreement in Implementation

Procedural Annex XV Storage and Transport of Military Munitions and Explosives for the United States Forces in Spain Procedural Annex XVI - Waiver of Primary Right to Exercise Criminal Jurisdiction over United States Personnel in Spain

For information on the criminal jurisdiction and claims provisions, see ante, Ch. 6, § 3, pp. 292-298.

Thailand

A U.S.-Thailand press statement, issued jointly by the Royal Thai Government and the American Embassy at Bangkok on July 16, 1976, announced that U.S. military withdrawals from Thailand had taken place in accordance with a mutually agreed withdrawal schedule. The following is an excerpt from the joint press statement:

The Minister of Foreign Affairs of Thailand, Mr. Phichai Rattakul, and the American Ambassador Mr. Charles S. Whitehouse, met on July 16, 1976, to review the question of United States military withdrawals from Thailand. The Ambassador informed the Minister that the radio research facility at Ramasun was closed on June 20, that the deepwater port at Sattahip was turned over to the Government of Thailand on July 15, and that the Macthai Headquarters will be closed on July 20, thus completing the withdrawal schedule. . . agreed by both Governments. After July 20, 1976, therefore, the only U.S. military personnel remaining in Thailand, other than those attached to the Embassy and the SEATO Medical Research Laboratory, will consist of members of the Joint United States Military Advisory Group whose number today is 263. They were pleased to note that the SEATO Medical Research Laboratory would be retained and that its humanitarian work programs on tropical diseases would thus be continued.

The Minister of Foreign Affairs and the Ambassador noted, in addition, that discussions were continuing on arrangements for turning over to Thailand the Integrated Communication System, retention in Thailand of 15,000 short tons of ammunition with a view to its subsequent purchase by Thailand, operation of the seismic research station at Chiang Mai, transit rights at Takhli for refueling and emergency repairs of U.S. planes, and turnover to Thailand of

items of radio equipment. All such arrangements remained subject to final approval by the two governments.

Press Briefing Paper, July 16, 1976, Dept. of State File EA/P.

On Decembeer 29, 1976, a memorandum of understanding and a memorandum of agreement regarding the Chiang Mai Seismic Research Station in Thailand were signed by representatives of the Government of the United States and the Government of Thailand. The memoranda effectuated the turnover to the Royal Thai Government of the American-built and operated center.

The memorandum of understanding provides for turning over to the Royal Thai Navy Hydrographics Department the buildings and fixed installations constituting the station, and making available to that Department the instruments, equipment, and supplies necessary for the operation of the station. The U.S. Air Force agreed, subject to the availability of funds, to pay all reasonable costs of operation, including the training of Thai personnel to the station and the maintenance and repair of its equipment. In return all data produced by the station is to be shared with the United States, and U.S. personnel are to have access to the station to provide quality control, technical assistance, and training. The term of the agreement is three years, with either party able to terminate after three years upon one year's written notice.

The memorandum of agreement, which contains five annexes, provides for details of the purpose, turnover, and operations of the station, as well as precise arrangements for the training of Thai personnel and paying of reasonable costs by the United States, including the salaries of Thai civilian (but not Thai military) personnel at the station.

Dept. of State File L/T.

Turkey

The United States and Turkey, on March 26, 1976, signed an Agreement Relative to Defense Cooperation Pursuant to Article III of the North Atlantic Treaty in Order to Resist Armed Attack in the North Atlantic Treaty Area. The agreement was negotiated with the understanding that it would be subject to congressional approval; it expressly provides that it shall not enter into force until the parties exchange notes indicating approval of the agreement in accordance with their respective legal procedures. President Ford transmitted the agreement to the U.S. Congress on June 16, 1976, requesting that it approve and authorize appropriations to implement the agreement and a related exchange of notes. He transmitted draft legislation in

the form of a Joint Resolution of the Congress for the purpose. In his message of transmittal, the President described the new agreement in the following terms:

The new agreement is consistent with, but not identical to, the preceding Defense Cooperation Agreement of 1969. Founded on mutual respect for the sovereignty of the parties, the agreement (Articles I and III) authorizes U.S. participation in defense measures related to the parties' obligations arising out of the North Atlantic Treaty. It is understood that when the agreement enters into force pursuant to Article XXI, activities will resume which were suspended by the Government of Turkey in July 1975, when the Turkish Government requested negotiation of a new defense cooperation agreement. [See the 1975 Digest, p. 830.]

The agreement provides a mutually acceptable framework for this important security cooperation. The installations authorized by the agreement will be Turkish Armed Forces installations under Turkish command (Articles IV and V). Article V clearly provides for U.S. command and control authority over all U.S. armed forces personnel, other members of the U.S. national element at each installation, and U.S. equipment and support facilities.

The installations shall be operated jointly. In order to facilitate this objective, the United States is committed to a program of technical training of Turkish personnel.

Other provisions of the agreement deal with traditional operational and administrative matters, including: operation and maintenance of the installations; ceilings on levels of U.S. personnel and equipment; import, export and in-country supply procedures; status of forces and property questions.

Article XIX specifies the amounts of defense support which the United States plans to provide Turkey during the first four years the agreement remains in force. We have provided such support to this important NATO ally for many years to help Turkey meet its heavy NATO obligations. The article provides that during the first four years the agreement remains in force, the United States will furnish $1,000,000,000 in grants, credits and loan guaranties, to be distributed equally over these four years in accordance with annual plans to be developed by the Governments. It further provides that during the first year of the defense support program, $75 million in grants will be made available, with a total of not less than $200 million in grants to be provided over the four-year life of the program. The Article also sets forth our preparedness to make cash sales to Turkey of defense articles and services over the life of the agreement.

The related exchange of notes details defense articles we are prepared to sell to the Republic of Turkey at prices consistent with U.S. law. It further provides for Turkish access to the U.S. Defense Communications Satellite System, and for bilateral consultations regarding cooperation in modernizing Turkish defense communications.

The defense support specified in Article XIX and in the related exchange of notes will be provided in accordance with contractual obligations existing and to be entered into by the Governments, and with the general practices applicable to all other recipient countries. The accompanying draft legislation accordingly provides that the generally applicable provisions of our foreign assistance and military sales Acts will govern this defense support, and that it will be exempted from the provisions of section 620(x) of the Foreign Assistance Act as amended. The draft legislation further provides that it fulfills the requirements of section 36(b) of the Foreign Military Sales Act as amended and section 7307 of Title 10 of the United States Code with respect to the transfer of materiel pursuant to the related exchange of notes.

The agreement will have a duration of four years, and will be extended for subsequent four-year periods in the absence of notice of termination by one of the parties. As the four-year defense support program comes to an end, the agreement provides for consultation on the development of a future program as required in accordance with the respective legal procedures of the two Governments. Article XXI stipulates the procedures under which the agreement can be terminated by either party, and provides for a one-year period following termination during which the agreement will be considered to remain in force for the purposes of an orderly withdrawal.

This agreement restores a bilateral relationship that has been important to Western security for more than two decades. I believe it will promote U.S. interests and objectives on the vital southeastern flank of NATO and provide a framework for bilateral cooperation designed solely to reinforce NATO and our common security concerns. To the extent that the agreement restores trust and confidence between the United States and Turkey, it also enhances the prospects for a constructive dialogue on other regional problems of mutual concern.

*

For the text of the U.S.-Turkey agreement and related notes, the President's message to Congress and draft of proposed legislation with section-by-section analysis, see H. Doc. 94-531, 94th Cong., 2d Sess. For the full text of the President's message, see also Dept. of State Bulletin, Vol. LXXV, No. 1933, July 12, 1976, pp. 60–62. Under Secretary of State for Political Affairs Philip C. Habib testified in support of the agreement at hearings before the Senate Foreign Relations Committee on Sept. 15, 1976, on S. J. Res. 204 to authorize the President to implement the agreement. Text released by the Dept. of State Sept. 15, 1976. No action on S. J. Res. 204 was taken by the 94th Cong. The draft legislation was resubmitted on Jan. 18, 1977 (H. Doc. 95-57, 95th Cong., 1st Sess.).

Political Contributions and Fees

Section 604(b) of the International Security Assistance and Arms Export Control Act of 1976 (P.L. 94-329; 90 Stat. 767), approved June 30, 1976, added a new section 39 to the Arms Export Control Act entitled "Fees of Military Sales Agents and Other Payments." It directs the Secretary of State to require, by regulation, adequate and