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

313. Letter From the Acting Secretary of State to the Assistant Secretary of Defense for International Security Affairs (Hensel)¹

Washington, June 23, 1955.

Dear Mr. Hensel: In your letter of May 14, 1955,² you requested that the Department of State join the Department of Defense in requesting the Director of the Foreign Operations Administration to consider an increase in the planned FY 1956 allocations of defense support and direct forces support funds for Iran in light of the recommendations recently submitted by the country team and the comments of the Joint Chiefs of Staff.

There is attached a copy of a letter to the Director of the Foreign Operations Administration which endorses your request and recommends specific consideration of an additional allotment of $9.5 million for Iran.

Sincerely yours,

Herbert Hoover, Jr.³

[Attachment]

Letter From the Acting Secretary of State to the Director of the Foreign Operations Administration (Stassen)⁴

Washington, June 23, 1955.

Dear Mr. Stassen: The Assistant Secretary of Defense wrote the Department of State on May 14, 1955, requesting support of the Department of Defense’s request for consideration of increased allocations of defense support and direct forces funds for Iran. Enclosed with the letter were copies of a letter to you dated May 14, 1955, and a memorandum dated April 12, 1955, from the Joint Chiefs of Staff on the same subject. I understand that copies of these communications were directed to you.

I am pleased to note the affirmative attitude of the Department of Defense and the Joint Chiefs of Staff regarding additional defense support and direct forces aid for Iran and I concur in their views. I suggest that, if agreeable to you, there be consultations between your Agency and the Departments of Defense and State as to the extent of further aid desirable.

I appreciate that over–all demands may prohibit providing the total funds requested by the country team in Tehran’s telegram 1948 referred to by the Department of Defense. However, I would like to suggest that the interagency discussions particularly consider the country team’s priority request for $9.5 million to initiate certain self–contained military projects. This request was originally designed to accelerate improvements in Iran’s military establishment by getting started this fiscal year. Although this Department had previously hoped that an additional program could be financed from current fiscal year funds, it now understands that such funds are not available. It therefore recommends that planning be started at an early date, looking to a prompt decision regarding providing funds for Iran from next fiscal year’s money.

There are distinct advantages to making these funds available promptly. As elaborated in Secretary Dulles’ letter of November 8, 1954, to the Secretary of Defense, there exists a favorable situation in Iran for advancing the country’s defensive capabilities as well as its closer cooperation with its neighbors in the free world. However, this favorable situation cannot be expected to remain static. Prompt assistance by us will enable Iran, and provide the incentive for Iran, to move forward with its own plans for increased military expenditures in coordination with United States assisted projects.

Sincerely yours,

Herbert Hoover, Jr.⁵

1. Source: Department of State, Central Files, 788.5–MSP/5–1455. Top Secret. Drafted by Crowl and cleared by Baxter and Jernegan.
2. Document 310.
3. Printed from a copy that bears this stamped signature.
4. Top Secret. Drafted by Crowl and cleared by Baxter, Dixon, Jernegan, and Frechtling (in draft).
5. Printed from a copy that bears this stamped signature.