Foreign Relations of the United States, 1964–1968, Volume XXII, Iran

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

Tehran, December 13, 1966, 0800Z.

2499. Secretary’s Talk With Shah. Following are highlights of more than three hours’ discussion between Secretary and Shah evening 12th:

1. Presidential Greetings. Secretary said he brought personal greetings from President who is always interested in Shah’s views on subjects of international import. Shah asked that greetings be reciprocated and expressed hope that President’s health is fully restored.

2. China. Secretary explained that with respect to Viet-Nam Soviets are hesitant to play peace-making role because of their relations with China. At Hanoi there is enigmatic situation but chief obstacle is China. Destruction of culture, except for nuclear science activities, is indicative of bellicose and ultra-nationalistic character of present ChiCom regime. Secretary opined that two ChiCom trends are to be feared: a) increasing militancy; or b) accommodation with the Russians which would again unite these two great powers in drive for world revolution. USG hopes, Secretary said, that both extremes can be avoided and this explains our desire for early stabilization of Southeast Asia. Shah said of two alternatives mentioned by Secretary he would prefer former for U.S.S.R.-CPR rapprochement could only occur if Soviets moved closer to ChiCom policy of belligerence. ChiComs, Shah said, are fanatical ideologists whereas Soviets are adjusting primitive Marxist philosophy to more acceptable system since pure Marxist system has proved failure.

3. Viet-Nam. Secretary reported current situation in Viet-Nam and commended fine work being done by Iran medical team. Re military aspects Secretary emphasized our forces cannot be defeated. He stated USG will persist until a successful outcome is attained for if we fail to do so our commitments elsewhere in the world would in eyes of Communists be worthless. Shah agreed and said US should not be deterred by students and other critics. Secretary pointed out there is growing unhappiness in American public opinion at lack of support by our friends and allies. War in Viet-Nam has changed from organized military conflict to primarily guerilla warfare. Particularly needed is assistance in constabulary endeavors. Shah parried this cue by asking why is there Viet Cong. Secretary said Viet Cong in part result of totalitarian tactics of Diem regime, particularly oppressive propensities of Diem’s brother. Shah noted Hanoi is equally totalitarian. Secretary pointed out Diem regime was ruthless enough to alienate people but not as ruthless as Hanoi regime in enslaving the populace. Secretary expressed hope that recent elections, constituent assembly and other developments might lead to more wholesome South Viet-Nam political situation. Shah thought key need is strong leadership. (Secretary has asked Ambassador to follow up with Shah matter of constabulary assistance.)

4. East-West Trade. Shah expressed wholehearted approval of current USG policies for building trade bridges with Eastern Europe. From his visits, he could testify that those countries want increased independence. He cited his efforts to sell oil in East European markets which, he is convinced, are noncompetitive with consortium markets. Secretary wondered whether Soviets and Romanians are truly in need of oil. Shah said Romanians wish to use their high quality crude for sophisticated purposes and in any case the amounts of crude Iran will sell are relatively small. While differing in character, all of the satellites in the Shah’s view are loosening their ties with the Soviets despite latter’s efforts to perpetuate their dependence.

5. Soviet Arms. Recalling what he described as strong Soviet efforts last summer to sell Iran MIG’s and SAM’s, Shah reaffirmed his decision not to buy any sophisticated Soviet military equipment. To do so he noted would be incompatible with procurement sophisticated American equipment and would require undesirable influx of Soviet advisors. Shah indicated, however, that active negotiations are in progress with Soviets for purchase of anti-aircraft machine guns, noting Soviet equipment this type less expensive than similar American equipment.

6. Relations With Pakistan. While not agreeing with Pakistan’s flirtations with ChiComs, Shah declared firm friendship for Ayub. Shah appeared a bit miffed that Paks recently wined and dined UAR’s General Amer. Paks have explained that they need Arab votes on Kashmir question but Shah noted no public pronouncements by Amer siding with Pakistan as over against India.

7. RCD. Without expatiating his complaints re CENTO, Shah expressed wish that RCD could be beefed up as alternative. He would like to see Afghanistan included, perhaps even Iraq. However, Turkey’s membership in NATO is stumbling block. Secretary said there no reason why there cannot be interlocking arrangements. Shah’s strong view is that Turks in any case are too Europe-centric.

8. Iraq. Shah said Iran has every desire to be on good terms with Iraq and current policy is to be as patient as possible with Iraqis. He claimed 60 percent of Iraqis are Shia and thus specially linked with Iran. There is no reason, Shah said, why Iraq should be submissive to Nasser.

9. UAR. Secretary asked Shah’s view whether it better for USG provide small quantities of food to UAR and thereby have some influence on Egyptian behavior or to refrain from providing food supplies and be without any influence. While our achievements had not been great, he said, our PL-480 program had helped US influence Nasser on number of matters, e.g. moderating Nasser re Congo, re Libya and re Arab boycott. Shah said Nasser wittingly or unwittingly serving as Soviet tool and in any case is dissipating his resources on adventures when he should concentrate on doing more for his people. Shah implied that USG food supplies should be resumed only if Nasser gets out of Yemen and stops agitating against King Hussein.

10. Iran Development. Secretary commended Shah for Iran’s remarkable economic progress, also for satisfactory resolution of recent oil crisis. At dinner, Shah, PriMin, FornMin and Court Minister Alam spent much time describing successes of what Shah considers his “revolution.” PriMin Hoveyda reported GNP increase this year will again exceed 10 percent. To Secretary’s request about next steps, PriMin said govt is heavily engaged in formulating fourth five year plan and main emphasis will be on development of agriculture. Shah said he knows that increased world food production is subject of great interest to President Johnson and he (Shah) is already formulating some thoughts on this subject and what Iran is doing about it in anticipation of visit with the President next June.

11. Comment: While nothing sensational emerged from the conversations, clearly Shah was delighted to have opportunity to exchange views with Secretary. Shah’s constructive purpose and detailed knowledge of what is going on in world and in his own country were impressive. Also heartwarming was his obvious sympathy for what USG is trying to do. In absence of aid programs, which formerly featured US-Iran relationships, intimate talks of this kind with top-level US officials, including sharing of confidences, are highly useful instruments in retention of friendly ties between our two countries.

12. Incidentally, Secretary’s visit here was not marred in any way by activities critical of US policy in Viet-Nam. On contrary, while motoring through city Secretary’s cavalcade was on several occasions greeted with impromptu applause.

Meyer

1. Source: Department of State, Central Files, ORG 7 S. Secret; Priority; Exdis. Repeated to Paris for the Secretary.