228. Memorandum From the President’s Special Assistant (Rostow) to President Johnson1

SUBJECT

  • Talking Points for the Shah—5:30 p.m. Tuesday and Wednesday2

The Shah would like to see you alone.3 Since the main purpose of his visit is to develop your personal relationship, this makes sense. You have nothing to negotiate but lots to talk about. Some of these subjects may fall over into after-dinner chat or into your second session. But the following cover the full range of likely topics:

Middle East

1.
Arab-Israel. You want to see a peace that will last. You are ready to play a constructive role, but you can’t force the Israelis to move. The leaders of the region have to face up to the need to end the state of war. Then maybe we can help find the terms of a settlement. You appreciate his constructive stand. What does he think chances for a settlement are? (He believes it’s important to shore up Hussein.)
2.
Regionalism. You think it’s important for the Middle East to begin acting like a region. On your Pacific trip you saw what regional cooperation promises to do. Iran is a natural to help draw the Middle East together, because the Shah has broader contacts than most leaders. For instance, you understand the Shah, at his recent meeting with President Ayub and the Turkish Prime Minister, kept Ayub from tearing up CENTO.
3.
Nasser. You know the Shah is concerned about radical Arab influence in the Persian Gulf. We are too. You hope Iran and her neighbors will cooperate in strengthening the Gulf as a little region all its own.

Global

4.
U.S.-Soviet relations. You’d like to tell him a little about your meeting with Kosygin—your reflections on how far the thaw goes.
5.
Iran-USSR. You’d like to hear his experience with the Russians. (He has moved toward more open relations with Moscow but had second thoughts since the Middle East war. While we can’t keep him from a [Page 417] business relationship with the USSR, we do want to urge caution. Congress gets upset.)
6.
USSR-Middle East. You’d be interested in his estimate of the Soviet objectives. Moscow has made some gains but you doubt the Russians will pay the full bill to bail Nasser out. You’re still certain Moscow’s main aim is to drive us out of the area and undercut non-socialist governments.
7.
Vietnam. You thank him again for Iran’s medical unit. (He will appreciate any thoughts you want to confide on our position.)

U.S.-Iranian Relations

8.
Shah’s independence policy. You frankly recognize that a new era is beginning in our relations and you welcome it. You are pleased that Iran’s own income is increasing and that Iran’s dependence on outside aid is decreasing. (AID phases out this year.) This is not the end of American participation in the Shah’s development program. It’s a chance for American private enterprise backed by the Export-Import Bank to enlarge its relations with all aspects of the Iranian economy.
9.
Reform. You congratulate him on Iran’s economic progress and would like to hear how his reform program is going.
10.
Military aid. You know the Shah is concerned about the state of our military assistance. (There is $100 million in credit still to go under our current sales understanding. This is a firm contract, which we would have to find a way to fulfill even if the Church Amendment stands. The Shah is mainly thinking beyond this.) You want to continue our military relationship and we’ll do the best we can within the limits Congress sets. You’d like to tell him about Congressional attitudes because he’ll be seeing members of the Foreign Relations Committee Wednesday afternoon and other members of Congress at the Vice President’s luncheon on Thursday.
Walt
  1. Source: Johnson Library, National Security File, Country File, Iran, Visit of Shah of Iran, 8/22–24/67. Secret.
  2. August 22 and 23.
  3. The President and the Shah met privately in the Oval Office on August 22 from 5:28 to 7:11 p.m.—interrupted briefly by Rostow and McNamara. (Johnson Library, President’s Daily Diary) No record of their conversation has been found, but see Document 236.