423. Memorandum From William H. Brubeck of the National Security Council Staff to President Kennedy0
SUBJECT
- South African Submarine Sales
You will recall that in September you authorized exploratory technical talks regarding South Africa’s interest in a $90-130 million purchase of submarines with the clear understanding that the talks would involve no express or implied commitment on the part of the U.S. to sell and that, in any event, no decision would be made before the end of this year. As a result of a first round in South Africa, State and Defense are now considering a South African proposal for another round of exploratory talks here in the near future.
[Page 658]The prospective value of sale, however, is now down to about $38 million due to South Africa’s preference for a smaller, cheaper submarine which the Navy got ELCO to design expressly to meet South African needs. South Africa also has indicated interest in some other military purchases, of which the only plausible one seems to be a $ 35-40 million air defense system for their Simonstown Naval Base.
You will recall that in the Security Council debate in August we announced termination of all military sales to South Africa by the end of this year but reserved the right of possible future sales where required for “the common defense.” With the South African issue becoming steadily more difficult internationally, we now have two problems:
- 1.
- Given its political difficulties and its sharply reduced balance of payments value, should we continue to explore the submarine sale?
- 2.
- In order to retrieve some balance of payments value, should we not only continue submarine talks, but also entertain some additional South African requests such as the Simonstown air defense system?
State and Defense now have these questions under review.
- Source: Kennedy Library, National Security Files, Countries Series, South Africa. Confidential.↩