321. Memorandum of Conversation1
PARTICIPANTS
- President Lyndon B. Johnson
- Prime Minister Hoveyda of Iran
- Harold H. Saunders
PLACE
- The President’s Oval Office
The President welcomed the Prime Minister, and the Prime Minister extended the Shah’s greetings. The Shah had asked him to express his hope that the President and Mrs. Johnson would have an opportunity to visit Iran again soon. The Prime Minister went on to express appreciation that the “American Government under your leadership” had always extended the support Iran needed. He felt Iran is on the right track and “things seem bright.” “What we need is peace in the world; we have stability at home.” There are no problems between Iran and the U.S. We have been good friends. The U.S. has supported Iran’s development, and the time has come to broaden economic relations between the two countries. He hoped that more US firms would come to work in Iran. “Development is not only government-to-government business but concerns the peoples of our countries as well. Iran has all the facilities for investment of capital and feels that if private firms make money, Iran makes money.”
The President said that is a very enlightened viewpoint. As a result, he felt development will come more rapidly. He said he did not know any country—and he has been in dozens—where the leadership has been wiser or more effective. “Some people talk about development. Some people do it.” The Prime Minister said that if Iran continues at its present speed, it will double GNP in seven years. Iran is even reaching the point where it could begin to think about assisting its neighbors.
The President said that Iran could be a constructive force for peace. The Prime Minister said that the state of the world compels Iran to responsible leadership. Irresponsible leadership could lead to war. Iran must provide its people the insurance that military strength gives. Iran has to modernize its forces. The Iranian taxpayer expects this kind of security. But equally important, the defense of an area should be the burden of the people of the area. Iran has no interest in attacking anyone. [Page 570] Iran understands that the British have to leave the Persian Gulf. “I don’t say we appreciate it, but we understand it. Now it is up to the people of the Persian Gulf, and their understanding and cooperation can provide stability there.” One of the problems is that some of the regimes on the other side of the Gulf are unstable. He mentioned principally Iraq but also Syria and the UAR. He said “we have to look for peace and count on it. We have to build the monument of peace.” This is the policy the Shah has followed.
The Prime Minister continued, saying that relations between Iran and the U.S. have developed nicely. Never in my four years as Prime Minister has there been any serious problem with the U.S. We have been real friends—not only in days of happiness but in difficult days. He is happy that Iran does not need any more grant aid but he is thankful for continuing US support with Iran’s military development and for the presence of the US military mission in Iran.
The Prime Minister hoped that the seventh tranche in the military sales program could be signed as soon as possible. That includes two squadrons of Phantoms. The area is more and more filled with armament and one never knows whose hand is on the trigger. The Prime Minister said we usually have an economic review before signing new military sales agreements. “I have many people with me and they will be happy to sit down in the Pentagon and have this review.” He specifically mentioned Iran’s need for more technicians “on levels 7 and 9.” Iran is preparing its own manpower and needs this help. The Prime Minister recalled that the Shah had raised the question of oil during his last visit. Arrangements are progressing and Iran knows that a new oil import quota for it is out of the question but hopes that maybe something can be worked out within the existing quota.
He mentioned that South Africa was stock-piling oil in its old empty coal mines. He would like to raise this possibility with the US Government in hopes that the US might buy from Iran for this purpose. Iran would also like to sell more JP–4 fuel for the US Navy and is ready to make certain concessions on price.
The President said that our people will be “happy and willing to explore” all these matters while the Prime Minister is here.
The President said further that, while he will be in Government only a short time longer and could not speak for the next administration, he believed that U.S. interests are such that a close relationship between the U.S. and Iran will continue. He understood that President-elect Nixon had already sent a message to the Shah saying this. “We want to do all we can to help.”
The President further said that we planned to continue our role in Iran’s military development as far as Congress will permit. The President [Page 571] said he had always been concerned that Iran’s military expenses not become so great as to undercut economic development.
The Prime Minister said, “There I can assure you that they are balanced.” The Prime Minister said Iran understands the importance of keeping these things in balance. Disarmament is the ultimate key to these problems and Iran would be happy to disarm tomorrow if that were possible. The President said that we were trying to work along these lines with the Soviet Union. The Prime Minister said that the cost of one plane could build three hospitals. But, he asked rhetorically, “What is the use of the hospitals if you do not have the planes to protect them?”
The President said that we cannot change our oil import policy but we would certainly consider the purchase of Iranian products wherever their prices are competitive. We favor whatever barter arrangements Iran can work out with the private U.S. companies and hope that Iran can increase its opportunities that way. The President said that there may be a time when the U.S. will not be in the same position it is now on oil and we may have to do what South Africa is doing. We are fortunate to have friends like Iran. [Comment: The implication was friends who have oil if we need it some day.]2
The President said that in the years left to him he hoped he could return to Iran. He remembered the warm welcome he had received there and expressed the deep affection he felt for the Iranian people. He expected to be busy in the next couple of years with his library but he expected that he and Mrs. Johnson would have time to travel. He hoped that the Prime Minister would tell His Majesty the Shah that the President recalls the “gorgeous” reception the Johnsons had received on their last visit to Tehran and he is looking forward to seeing Iran again and to going out in the countryside and seeing how Iran’s land reform program has gone.
The Prime Minister said he hoped the President would keep his promise and “come and see us.” The people of Iran have “the greatest regard for your courage.” He spoke of how the people in Iran had watched the March 31 speech on television and felt “a great deal of tension” [comment: presumably over the thought that the President would leave office]. He spoke of the President’s great responsibilities for the peace of the world and how greatly Iranians had appreciated his handling of those responsibilities.
The President said he had made every effort not to expand the war in Southeast Asia by involving the USSR or Communist China. At the same time, he could not stand by and let aggression go unopposed. The only US objective is to see the people of the area determine their own future. [Page 572] The US will come home as soon as that is possible. We don’t want to change governments or destroy North Vietnam or kill another person.
The President said people from all over the US would be coming to the dinner for the Prime Minister tonight. This was the next to last official visit during his Administration and it turns out that the last two—Iran and Kuwait—are with neighbors and good friends.
The conversation turned again to the Iranian economy. The President asked about Iran’s agricultural and land development. The Prime Minister said the Shah is never satisfied with Iran’s achievements. The President referred to his remarks at the arrival ceremony and said that the key to development is the human process he had described there—the distribution of the land and education and, above all, giving the father the hope that his son’s life can be just a little bit richer than his own. Once you get human beings involved this way, you have something very exciting going.
The President promised to review his conversation with the Prime Minister with Secretaries Rusk and Clifford later in the day and would encourage them to be as helpful as possible.
The Prime Minister returned to the question of peace and stability in his part of the world. He mentioned a disturbing report that the Iraqis are trying to develop a capacity to wage germ warfare. The Soviets had refused help, but the Iraqis are approaching Bulgaria now. The thought of germ warfare in the hands of such an unstable government made him shudder.
The President asked what the population of Iran is now, and the Prime Minister replied, “close to 26 million” with a 2.7% growth rate. He said his government had launched a highly successful family planning program without fanfare—“we have done it without talking about it, without fuss.” The problem is not that they don’t want more Iranians, he said, but they want better balance in the population since 48% of the population is now ages 0–14.
The President asked about fertilizer use. The Prime Minister said Iran is building new plants, one with Allied Chemical. Iran in a recent six-month program had demonstrated the capacity to increase its rice crop from 2–1/2 tons per hectare to 4–1/2 tons. When the Prime Minister mentioned Allied Chemical, the President checked and said that Mr. John Connor of Allied would be at the dinner tonight. The President described a new liquid feed Allied had developed that the President had tried on his Ranch.
The Prime Minister, picking up the President’s description of the liquid feed, said Iran is now trying to develop protein products from oil. He cited the problem of land erosion that arises when animals are allowed to overgraze on the grasslands and agreed with the President that it is important to find other means of feeding until the grass is established. The [Page 573] President commented that fertilizing these lands to get grass started is expensive, but the results justify the expense. He gave an example of his experience in starting grass on some of his own eroded land in Texas.
The President then said that it had been called to his attention in connection with the recent monetary crisis that Iran had not yet ratified the Special Drawing Rights Amendment to the IMF. The President pointed out that the amendment would not go into effect until 67 countries with 80% of the votes had ratified it. The US had been among the first to ratify. He very much hoped Iran would ratify in the near future. The Prime Minister took a piece of paper out of his pocket, made a note and said he would look into it.
The Prime Minister said further that the recent monetary crisis had been distressing. He told the President that President DeGaulle, whom the Prime Minister had just seen in Paris on the way to Washington, had been grateful for the President’s message at the height of the franc crisis. The Prime Minister had asked President DeGaulle what he thought the results of his monetary reform program would be, and DeGaulle had declined to predict. The President explained how he had come to send the message to DeGaulle, saying that it was a word of encouragement at a difficult time for DeGaulle and not a recommendation or endorsement of his program. Once DeGaulle had crossed the bridge of decision, the President felt our role was to help him succeed rather than to make life difficult for him.
The President then invited Mr. Walt Rostow to bring in Dr. Henry Kissinger to meet the Prime Minister. The President informed Dr. Kissinger that he had told the Prime Minister that he felt close relations would continue to exist between the US and Iran in the new administration. The President cited President-elect Nixon’s message to the Shah saying this. Dr. Kissinger said that he had “spoken to Mr. Nixon about Iran yesterday” and he could reiterate Mr. Nixon’s earlier words to the Shah today in behalf of the President-elect. The President told the Prime Minister that Dr. Kissinger had served both Republican and Democratic Presidents faithfully and well and that the US is fortunate and proud to have men of his stature who lend their great abilities to the Government regardless of partisan positions. The President then told the Prime Minister that he would be talking further with him this evening and would be glad to take up any further issues that might emerge in the course of the Prime Minister’s discussion here.
Comment: The discussion flowed easily. The Prime Minister was relaxed, informal, responsive and friendly. The President spoke with warmth and good feeling about his past and present relations with the Shah and other Iranian leaders. They had no trouble keeping the conversation [Page 574] moving, and one could only judge the meeting thoroughly satisfactory on both sides.
- Source: Johnson Library, National Security File, Country File, Iran. Secret; Exdis. Drafted by Saunders. Copies were sent to Rostow and Read. According to the President’s Daily Diary, the meeting took place from 11:57 a.m. until 12:45 p.m. (Ibid.)↩
- All brackets are in the source text.↩
- Printed from a copy that indicates Saunders signed the original.↩