Office of the Historian

323. Letter From the Secretary of Defense (Wilson) to the Secretary of State1

Washington, August 5, 1955.

Dear Mr. Secretary: Reference is made to your letter of June 27, 1955,2 and subsequent oral requests from Under Secretary of State Hoover to Deputy Secretary of Defense Anderson, stressing overriding political factors and requesting consideration of increased military assistance to Iran, in light of current prospects for accession by Iran to the Turco-Iraqi Pact.

From the military point of view, additional military assistance funds for Iran to the extent of $50 million, as proposed, could not be justified prior to completion of the current evaluation of the Iranian Armed Forces, or prior to a decision as to the role Iran might be expected to play in Middle East defense arrangements. Even when this had been accomplished, consideration of additional military assistance funds for Iran should be made in the light of other Middle East area requirements and worldwide competition for the limited MDAP funds then available, as well as the increasing reluctance of Congress to provide new funds.

[Page 762]

It should be noted that the worldwide Mutual Defense Assistance programs for the fiscal years 1950 through 1955 are presently unfunded in the amount of approximately $500 million, and the MDA losses under section 1311 of the Appropriations Act of 19543 result in an additional shortage of $228 million. From this it can be readily seen that any additional military assistance for Iran in fiscal year 1956 would have to be accomplished at the expense of higher priority programs for other countries.

It has been established that, as of March 31, 1955, out of the Mutual Defense Assistance matériel programs for fiscal years 1950 through 1955 totaling $115.8 million for Iran, a total of $81.7 million has been shipped. It is considered that the undelivered balance of the fiscal years 1950 through 1955 programs will assure the continuation of deliveries at the current rate through fiscal year 1956, which appears to be the extent of the Iranian forces’ ability to absorb military matériel.

For the cited political reasons, and in spite of the lack of a firm military basis, the Department of Defense concurred in the transmission of a Department of State cable (Number 55 to the Embassy in Tehran dated July 1.1, 1955)4 authorizing Ambassador Chapin to assure the Shah of Iran that military matériel deliveries will be continued at the current rate throughout fiscal year 1956, and that military assistance will be increased during fiscal years 1957 and 1958.

While the Shah of Iran was not informed of the dollar figures, he has been assured of the planned increase in military assistance above the current delivery rate, which is approximately $20 million annually. Hence, it is considered necessary to include the planned $25 million annually for fiscal years 1957 and 1958 as valid commitments in the presentation of tentative military assistance programs to the Congress for each of the two years involved.

Sincerely yours,

C.E. Wilson
  1. Source: Department of State, Central Files, 788.5–MSP/8–555. Top Secret.↩
  2. Document 314.↩
  3. Apparent reference to the Supplemental Appropriations Act of 1955, approved August 26, 1954; 68 Stat. 830.↩
  4. Document 320.↩