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

4503. Subj: CIA and Students.

1.
Both Shah and PriMin Hoveyda have mentioned several times to me in past few days their suspicions that CIA has been subsidizing anti-Shah Iranian students in U.S.
2.
To both I have said USG has no secrets for whole story has appeared in Ramparts. Specifically Ramparts made clear that CIA refused support to Iranian students when their organization took on an anti-Shah complexion.
3.
Neither Shah nor Hoveyda were convinced, despite all oaths which I offered. Hoveyda referred to article in some German magazine which stated specifically that CIA was offering secret support to Iranian students. Shah conjectured that I as Ambassador might not be aware of all of CIA’s activities.
4.
I pointed out there no plausible reason why USG should support movement against regime of country which doing so well. But Shah is so [Page 366] upset by Senator Fulbright’s allegation re Iran becoming ripe for revolution that it difficult to stamp out his suspicion that there must be linkage between some USG element and the “Iran student” who fed that view to Fulbright.
Meyer
  1. Source: Department of State, Central Files, POL 13–2 IRAN. Secret; Limdis.