Department of State
TELEGRAM 3084
06 JAN 72   1850Z

Action: Amembassy ADDIS ABABA

IMMEDIATE INFO: Amconsul ASMARA IMMEDIATE

STATE
E X D I S

SUBJECT: ASA Cut-back at Kagnew
 
REF: Addis 0060 

1. Department learned only late Jan. 3 that as part government-wide economy drive DOD is considering termination of ASA operation at Kagnew by June 30, 1972. Dept. immediately contacted high-level Defense officials who in complete cooperation agreed Jan. 4 not to institute any action until inter-agency working group could review and monitor the implications and implementation of such a decision. We intend to study possible effects of proposed termination on other operations at Station, its ramifications for the Ethiopian economy and our bilateral relations; how phase-down would be accomplished and in consultation with Embassy and Consulate General, prepare scenario for informing Ethiopians in way most likely serve our interests. Dept. shares your concern and regrets that despite its efforts "rumor" has reached Ethiopia.

2. Until we have received and examined details about phase-down and its possible effects developed by working group and have shared them with you we should not raise subject with Ethiopians. If Emperor or other IEG official makes inquiry, however, you may say that you have not been officially informed about any such reduction at Kagnew but that you understand all agencies have been ordered carefully scrutinize activities in order make significant cuts in personnel and expenses. In such review by DOD, costly Kagnew operation very likely candidate for substantial economies, especially in view technological advances recently made. You may also indicate you are seeking clarification about rumor and will notify Emperor or Foreign Minister (as appropriate) when this received.

END

IRWIN