Office of the Historian

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

Tehran, April 19, 1967, 1020Z.

4121. Ref: State 176341.2 Subj: Shah’s Washington Talks—Water and Food.

1.
At this point we doubt Shah has specific proposals to make re water and food. His interest in these subjects as major world problems has been greatly stimulated by Secretary Udall’s visit and by various public pronouncements made by Secretary Freeman, copies of which we have supplied Shah. He knows these subjects are high priority in Washington and is developing his own thesis, still in embryonic form, that world should get its mind off international quarrels and address its united attention to great problems of tomorrow on this planet. Shah is determined limit population growth in Iran.
2.
Shah is convinced that water is limiting factor in food production, notably in Iran. In his talk with Rome Daily American editor Galling (Tehran A–559),3 Shah noted that in addition to desalination Iran would have to pump water up to 4,000 foot plateau which doubles cost. He is nationalizing “every drop of water” as tenth point of his “White Revolution,” a move which Secretary Udall suggested was as perspicacious as Teddy Roosevelt’s nationalizing forests (which already been done in Iran). Beyond these general points, we know of no specific projects which Shah might propose by way of desalination, etc. Our hope, however, would be that some small consultative project might emerge from Shah’s discussions with President and our impression is that Secretary Udall and his able aide Frank Diluzio have already given thought to something along this line.
3.
Re food production, Shah’s basic thesis is that there is no reason why Iran should not be self-sustaining which it already almost is. However, due to limiting factor of water, Iran will not be able to develop into significant food exporter. Shah’s belief is that Iran can make salutary contribution to food production in this entire region by supplying fertilizers from large petrochemical industry presently under construction.
4.
In talk reported in Tehran 4006,4 Shah specifically told Ambassador that he is deeply interested in project which is being proposed by William Warne, former USAID Director to Iran, more recently California Water Commissioner, and presently Vice President for Water Resources [Page 357] in David Lilienthal’s development and resources corporation. Warne is seeking to organize California consortium to develop commercially 100,000 acres of wheat production in Khuzistan. This fits in with Shah’s conviction that while his land reform program has been great success, Iran must proceed with larger-scale farming than 4-hectare plots which been awarded peasants. Shah is immensely impressed with large-scale agriculture in U.S. and wishes have Iran follow U.S. pattern. We recommend Department discreetly stay in touch with Lilienthal and Warne.
5.
Shah has already decided not to avail himself of political-military briefing (para 3 reftel). If truly worthwhile briefing re food and water problems could be provided and if time available, Shah might be interested.
Thacher
  1. Source: Department of State, Central Files, POL 7 IRAN. Confidential; Limdis.↩
  2. Dated April 17. (Ibid.)↩
  3. Dated April 18. (Ibid., SOC 13 IRAN)↩
  4. Document 189.↩