Office of the Historian

226. Memorandum From the Ambassador at Large (Harriman) to Secretary of State Rusk1

Washington, August 21, 1967.

I am puzzled by one line of your memorandum to the President of August 15 on his meetings with the Shah.2 In paragraph 4, among the topics for the President to discuss with the Shah is listed: “Soviet-Iranian military deals confuse our public and Congress.”

I wonder if this is a matter which the President would wish to raise since we are not presently in a good position to give the Shah any encouragement on more credit purchases of military equipment in the United States.

I understand the Shah has given us assurances Iran will not purchase “sophisticated” military equipment from the Soviet Union. In addition, Iran is paying for this equipment through natural gas sales.

It is certainly true that Symington and certain other Senators have expressed disapproval of the Soviet arms deal (partly because they were not informed in advance), but for my part I think the Shah has developed a more relaxed relationship with the Soviet Union and should not be discouraged from continuing this attitude. He is under no illusions, and yet is attempting to reduce tensions with his difficult northern neighbor through more normal trade and other relationships.

I would hope the President would concentrate his discussion on the other two points listed, namely, Soviet objectives to break Irano-American friendship, and caution not to let economic relations with the Soviets endanger Iran’s independence.

Perhaps also caution not to spend too much on military at expense of economic development.3

  1. Source: Library of Congress, Manuscript Division, Harriman Papers, Special Files of W. Averell Harriman, Public Service, Kennedy-Johnson Administrations, Box 15cl, Shah of Iran. Secret; Nodis. A copy was sent to Battle in NEA.↩
  2. Document 218.↩
  3. This last paragraph is typed in all capital letters.↩