252. Memorandum From the Department of State Executive Secretary (Battle) to the President’s Special Assistant for National Security Affairs (Bundy)0
SUBJECT
- Iran: Followup on Visit of Shah of Iran
Following is a summary of the status of important substantive actions initiated in the course of the Shah’s visit to Washington.
Military Assistance
The Shah received a copy of the Aide-Mémoire1 covering his conversation with the Secretary of Defense. This Aide-Mémoire (a copy has been transmitted to the White House) gives details of the proposed five-year military assistance program to Iran and the conditions affecting its implementation. The Shah indicated that he wished to consider it and discuss it with his own people and give his opinions later. Since we do not yet have a clear assurance from the Shah or his Government that he agrees with our proposals, we will proceed at present only with the planning element of our proposed program.
Economic Assistance
The Shah understands and agrees with the wisdom of our plans to enlist maximum support from other Western nations for multi-lateral [Page 634] assistance under the aegis of the IBRD by September of this year, and to maintain momentum in the planning process in the meantime. We will continue our efforts to bring about agreement between the IBRD and Iran on the Third Economic Plan. We will act to complete arrangements for a project loan on the Bandar Abbas project. We will also study the possibility of using PL 480 funds for government employees’ housing projects in Iran. We will continue to urge Iran to develop specific development projects for multi-national financial consideration and to provide Iran with assistance in carrying out surveys on which intelligent investment plans can be formulated.
CENTO
It was agreed that the two governments would make a final effort to persuade the Pakistan Government to send its Foreign Minister to the upcoming CENTO Ministerial Meeting,2 and would attempt to spur similar approaches on the part of the other CENTO countries. We have issued appropriate instructions to our Ambassador in Karachi, and are requesting the Turkish Government to approach the Pakistanis. The UK has already made two such approaches to Pakistan. The desirability of more frequent meetings between CENTO country diplomatic representatives was agreed, and a luncheon will be given by the Secretary for the CENTO Ambassadors in Washington before the Ministerial Meeting. The CENTO Ambassadors will be taken on a briefing trip to U.S. military installations in the near future.
U.S.-Iran Security Arrangements
It was agreed that Iran could not at present count on military assistance from Turkey and Pakistan should it be the victim of aggression by the USSR. We have strongly reaffirmed the assurances given to Iran by the United States in the past. It was agreed that the USSR knows that the United States stands behind Iran. No follow-up actions appear necessary.
Iraq and Afghanistan
It was agreed that in view of the Communist subversive threat in Iraq and Afghanistan, the United States should attempt to maintain a vigorous presence and maximum influence in these two countries. It was agreed that strong efforts be made, including favorable transit arrangements, to prevent the spread of Soviet influence in Afghanistan. No follow-up U.S. actions or policy changes are necessary.
[Page 635]The Possible Increase in Iranian Oil Revenues
We have informed the Shah that we would consider the possibility of approaching the major American oil companies with a view to maximizing Iranian oil revenues through production allocations in the Middle East. A staff study is underway in the Department. The Shah may meet with representatives of the major companies while he is in the United States, and a final decision as to what if any action should be taken by the United States should await the results of this meeting, if it is held.
Increased Assistance to the Iranian Gendarmerie and National Police
We understand that the President and the Shah conferred privately on the subject of possible assistance to the Iranian Police and kindred organizations in order to improve counter-insurgency capability. Liaison with the Paris Garde Mobile was mentioned. We understand that General Taylor is acting on this subject through the Inter-Agency Counter-Subversion Committee.
- Source: Department of State, Central Files, 788.11/4–1862. Secret. Drafted by Bowling on April 16 and cleared by Gaud in draft, William Bundy in draft, and Cottam.↩
- Document 248.↩
- The Tenth CENTO Ministerial Council meeting was held April 30–May 2 in London. Briefing material, memoranda of conversations, cables, and other documentation related to the Conference are in Department of State, Conference Files: Lot 65 D 533, CF 2087–2089. See also Supplement, the regional compilation.↩
- Printed from a copy that indicates Little signed the original above Battle’s typed signature.↩