USNATO GUIDANCE: PROJECTED SHORTFALL IN SPENDING FOR NATO

UNCLAS STATE 067708 SIPDIS, USNATO FOR MARILYN MORSE E.O. 12958: N/A TAGS: PREL PGOV NATO SUBJECT: USNATO GUIDANCE: PROJECTED SHORTFALL IN SPENDING FOR NATO MILITARY INVESTMENT REQUIREMENTS AND POTENTIAL COST-SAVING MEASURES REF: USNATO 260 ¶1. (U) Washington concurs with recommended positions outlined by USNATO in Ref A, specifically its proposal to reduce national administrative expenses (NAE) funds paid by NATO to nations and agencies managing NSIP projects from three percent to two percent in those instances when a nation has misplaced contracting documentation and cannot participate in a NATO audit. As a demonstration of U.S. leadership and as impetus for other Allies to follow suit, Washington supports Mission's proposal to forego one percent of the NAEs due the United States in connection with the now completed U.S.-managed Comiso Air Base project. Washington support is contingent on generating a reasonable level of Allied support for the initiative, and Washington instructs Mission to provide a detailed readout of the Infrastructure Committee discussions on this matter before agreeing to any further NAE rebates to NATO on U.S.-managed NSIP projects. CLINTON