131. Telegram From the Embassy in Iran to the Department of State1
1397. Hare Talks with Shah and PriMin.
- 1.
- In wide-ranging 1–1/2 hour talk 17th with Asst Sec Hare, Shah rehearsed well-known themes. They included: unpredictability of Iraq and readiness of Arabs to serve as Commie tools require Iran’s being able [Page 232] cope with regional military threats; even if available, foreign intervention as by friendly U.S. not desirable except of course in event of Soviet aggression which unlikely; Soviet objectives remain unchanged, i.e., penetration of Mideast leap-frogging Iran; specific Soviet objective which is clear from regular Moscow broadcasts is interdiction of West’s oil supply from Mideast; Soviet arms are continuing to pour into UAR, Iraq and Syria; Soviet penetration of UAR and Red Sea area already well advanced; Iran must protect its wealth-bearing Khuzistan area; disarmament is ideal but only possible if Arab military establishments controlled; Shah hopes to continue receive his military equipment from US and hopes USG won’t let this issue turn into another “steel mill business” and in general Shah urged U.S. (and oil consortium) should support Iran’s “command position” in Gulf and Mideast areas.
- 2.
- Asst Sec Hare conveyed Secretary Rusk’s greetings (which Shah reciprocated); volunteered some observations of Iraqi scene as he had just observed it; complimented Shah on success to date of his various reform programs including literacy corps; discounted Shah’s alarmest assessment of Soviet penetration of Arab world but said we maintaining alert observation of situation; assured Shah USG giving expeditious attention to its part of current military-economic deliberations; and stressed that economic development and adequate security must go hand in hand.
- 3.
- Of particular interest were Shah’s views re CENTO. While acknowledging CENTO’s value in economic and communications matters, Shah felt it had not met expectations as military organization, e.g. no command structure, etc. Its collapse, however, would be victory for CENTO’s critics. Shah said alternatives for replacing CENTO should be carefully studied. As for himself, he would like to see grouping of Afghanistan, Pakistan and Iran, with Iran because of its wealth and effective leadership playing key role. Form of this grouping not clear and Shah has not broached subject to Paks or Afghans. It doubtful if Turkey could be included because of its NATO affiliation. Nevertheless, Shah been giving some thought to revivification of Saababad Pact. He frankly admitted there no ready-made alternative to CENTO but all alternatives should be seriously studied. Asst Sec Hare agreed future of CENTO de-serves thorough study but at same time pointed out CENTO has had and continues to have significant value. Shah indicated Iran does not intend to cause any controversy at forthcoming CENTO Ministerial conference since he believes intimate discussions more feasible and useful.
- 4.
- Later in lengthy dinner discussion, PriMin Hoveyda emphasized Iran’s need to continue its remarkable economic progress. He said economic projections for our Annual Review before him for consideration and they will show Iran’s determination to maintain 8 percent growth rate. He made usual plea for American investments and USG influence [Page 233] on oil consortium for increased offtakes from Iran (noting that French are taking active interest in financing Iran-Soviet pipeline and in securing new oil concession in Iran). At same time PriMin echoed Shah’s views re essentiality adequate military establishment, Asst Sec Hare pointed out it was not simply matter of determining military needs but for USG it was practical problem of what USG can do, pursuant to Congressional authorization, to meet those needs.
- 5.
- On departure Shah asked that his best wishes be conveyed to President Johnson and Secretary Rusk.
Comment. While not much new emerged from these conversations they were very useful in allowing Iran’s two top leaders to present their case first-hand to a top USG official. Shah had obviously given his presentation forethought for it did not require more than a few minutes for him to swing into an appeal for USG forthcomingness in current discussions re Iran’s military needs. Once he had delivered his preordained words, Shah loosened up and latter part of discussion, particularly re CENTO, was natural and mutually responsive. PriMin Hoveyda, as usual, was informal and friendly throughout, pleading his case from depth of a heart thoroughly dedicated to economic progress of his country. All in all visit was successful as timely manifestation that USG continued to value Iran’s friendship.
- Source: Department of State, Central Files, POL IRAN–US. Confidential. Repeated to Ankara, Karachi, London, and CINCSTRIKE/CINCMEAFSA.↩