293. Memorandum From the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Allen) to the Acting Secretary of State1

SUBJECT

  • President’s Interest in Additional Military Aid for Iran

Discussion:

When the Shah of Iran was in Washington, the President, aware of the opportunity we have to build up strength in a hitherto weak country in Asia, told you that he did not want the Shah to leave this country without receiving definite evidence of our interest in assisting his country to become a stronger member of the free world community. The President indicated that he would be favorably inclined to give an additional increment of military aid to Iran this fiscal year, and an amount of $10–$20 million has been mentioned in this connection.2 It is believed that the training program being initiated in Iran is most important and has need of further support in order for its full effectiveness to be realized.

The Shah plans to leave the United States on February 11 and will have a final conversation with senior officers of the Department of State just prior to his departure. When he was in Washington, he was told that United States Government officials would give urgent consideration to the questions he raised about further development of the Iranian armed forces. It would be, therefore, appropriate and, in our view, very useful to inform the Shah before he leaves this country that, in view of the importance we attach to improved training of Iran’s armed forces, the President has directed an immediate increase in military aid to Iran for that purpose.

Recommendation:3

That you forward to the President the attached recommendation (Tab A) for an additional increment of military aid to Iran and suggested language (Tab B) which the White House staff might find useful in preparing a directive from the President to Defense and FOA, if he concurs in your recommendation.

[Page 699]

[Tab A]

Draft Memorandum for the President

SUBJECT

  • Increased Military Aid for Iran

The Shah of Iran will complete his visit to the United States on February 11. He has gained a favorable impression from his visit, but he has continued to ask whether any decisions have been made in Washington concerning the questions he raised about possibilities of developing his armed forces. Increasing the efficiency of the Iranian army will be a crucial element in continuing and strengthening the recent movement of Iran toward Western orientation, toward developing greater potential for resistance to aggression, and toward an eventual role in Middle East defense arrangements.

All interested United States agencies agree the first problem to be met in developing strength in the Iranian military establishment is better training. The Department of Defense is sending special training teams to accomplish this purpose. A request has been made by our military and civilian representatives in Iran for $4 million to provide the Iranians with such essential training facilities as firing ranges, training aids, field equipment and clothing to permit maneuvers. As training proceeds, the absorptive capacity and needs of the Iranian army will increase and additional equipment will be necessary to allow full advantage to be taken of our training teams.

You have expressed the wish that the Shah receive, before his departure from the United States, some tangible evidence of our earnest desire to help him and mentioned that you would be willing to consider between $10 and $20 million of additional military aid for this fiscal year. It is believed a supplementary program of $15 million would achieve your purpose. This sum would directly facilitate a fuller utilization of potentialities offered by the training program which is the first requisite in Iran and, if given at this time, would have most favorable psychological and political effects.

I, therefore, recommend that you direct appropriate officers of this Government to provide approximately $15 million as an additional increment to support our training program in Iran. The Shah could then be informed of the substance of this decision just prior to his departure from the United States when officials of the Department of State will be holding conversations with him in New York. A suggested text is attached.

[Page 700]

[Tab B]

Draft Memorandum for the Secretary of State, the Secretary of Defense (Wilson), and the Director of the Foreign Operations Administration (Stassen)

SUBJECT

  • Additional Military Assistance for Iran
1.
After a discussion with the Shah of Iran on December 13, 1954 concerning the Iranian armed forces, the President indicated his desire to give the Iranian Government some help in meeting additional costs incidental to developing more effective armed forces.
2.
The President wishes the Shah to be informed before his departure on February 11 of the fact that the United States Government will provide additional assistance, and requests that the Department of State, the Department of Defense, and the Foreign Operations Administration consult together in order to provide funds roughly in the order of $15 million, in addition to existing military and economic assistance programs. These additional funds should be devoted principally to assist the Iranian Government to meet additional costs arising from the military training program being initiated and should be available for defense support type of requirements as well as military equipment.
  1. Source: Department of State, Central Files, 788.5–MSP/1–3155. Secret. Drafted by Baxter, Stutesman, Kitchen, and Dixon. George V. Allen became Assistant Secretary of State for Near Eastern, South Asian, and African Affairs on January 26.
  2. At this point the following marginal notation by Hoover appears: “$10 m H”.
  3. Regarding Allen’s recommendation to the Acting Secretary, see footnote 5, infra.