130. Telegram From the Embassy in Iran to the Department of State1

1370. President’s Message re Iran-US Military Cooperation. Re Deptel 1002.2

1.
Handed President’s message to Shah during audience 12th. After reading it intensively, Shah agreed with me that it reflects healthy progress. He asked me to convey his gratification to President. He thought for time being no further correspondence required since matter appears to be on rails.
2.
Shah noted, it has been five months since he received emergency authorization from Parliament for $200,000,000 augmentation. He said although there is certain amount of urgency he will defer purchasing little while longer but he hopes USG can expedite matters so that survey report and economic review can be completed prior to his departure May 27 for three state visits. I said my impression is Washington desirous cooperating provided Iranian economic data is promptly provided.
3.
Shah said economic data being expedited. He wanted to make clear however, as he had in his most recent letter to President, that Iran’s future earnings must be taken into account when determining security program which Iran can afford.
4.
Shah added that while he supposed President not in position to do so, it would be helpful if USG authorities could as occasion permits impress on oil consortium members point he has been trying to make that it is in interest of oil industry and free world generally to assure that Iran has adequate income to support appropriate security program as well as Iran’s highly successful economic development (as over against furnishing vast sums of money to tiny sheikhdoms who are not as dependable nor influential as Iran in preservation of stability of Gulf region in interests of free world).
5.
Shah gratified that in first two months of 1965 consortium offtakes were up over 20 per cent that of year ago but noted in March they only 13 per cent. Average is 17 per cent. He anxious that at least 17 per cent be sustained as year’s average.

Comment. We will continue to press Iranians for economic projections. Central Bank Governor Samii indicates they are prepared and before PriMin for consideration. At same time, we hope Washington can cooperate in processing of Peterson Report with view to May 21 as target date for annual review. Our comments on latter forthcoming next day or two.

Meyer
  1. Source: Department of State, Central Files, POL IRAN–US. Secret; Limdis.
  2. Telegram 1002 to Tehran, April 11, transmitted the President’s message (Document 129) to the Embassy for delivery to the Shah. (Department of State, Central Files, POL IRAN–U.S.)