Foreign Relations of the United States, 1955–1957, Near East Region; Iran; Iraq, Volume XII

294. Memorandum From the Secretary’s Special Assistant for Mutual Security Affairs (Nolting) to the Acting Secretary of State¹

Washington, February 1, 1955.

With regard to the attached memorandum,² I would like to bring to your attention the following points, the first of which has to do with the substance of the proposal to grant $15 million additional military assistance to Iran during this fiscal year, and the second having to do with procedure. I am not aware how far this matter has progressed by decision of yourself or the President.

1. The funds for this proposed purpose would come from the appropriation for military assistance. The status of funds available to Defense for this purpose on a world–wide basis is roughly as follows:

Requirements exist for approximately $400 million for high priority end–item assistance which must be financed this year against present fund availability of approximately $150 million (not including possible allocation of Section 121³ funds for MDAP purposes). Thus, it is evident that the filling of this Iranian requirement would be at the expense of other military assistance programs which have a higher priority in the judgment of the Joint Chiefs of Staff.

2. As to procedure, I would strongly urge that this proposal be cleared both with the Department of Defense and with Governor Stassen before it is sent to the White House, unless this has already been done.

Views of the Joint Chiefs of Staff relevant to this matter, dated January 7, 1955,⁴ are contained in the attached memorandum (paragraphs marked in blue).⁵

FEN

1. Source: Department of State, Central Files, 788.5–MSP/2–155. Top Secret.
2. Reference is to the memorandum from Allen to Hoover, January 31, not attached, but printed supra.
3. Apparent reference to section 121 of the Mutual Defense Assistance Act, approved August 26, 1954, which authorized up to a $700–million appropriation to be used at the President’s discretion for support of nations in Southeast Asia and the Western Pacific. For text of the MDA Act, see 68 Stat. 832.
4. Document 287.
5. The source text indicates that a copy of this memorandum was sent to NEA. On February 2, in a memorandum to Hoover, Allen summarized the positions taken herein and in his memorandum to Hoover, supra. He added: “Unless you or the President feel strongly that we should do something substantial for the Shah, I suggest we limit our commitment now to $4,000,000 for the training mission.” A note in Hoover’s handwriting addressed to Jernegan and attached to Allen’s memorandum of February 2 reads: “Hensel is going to get together the Defense picture and try to justify $10 m.” (Department of State, Central Files, 788.5–MSP/2–255)