245. Briefing Memorandum From the Deputy Assistant Secretary of State for Near Eastern and South Asian Affairs (Rockwell) to the Ambassador at Large (Harriman)1
Washington, November 17, 1967.
SUBJECT
- Your Meeting with the Shah on November 22, 1967
The principal matters affecting our bilateral relations with Iran which are likely to arise during your meeting with the Shah are our military credit program, oil, and private American investment in Iran. The following are talking points on these subjects:
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1. Military Credit Program (Tab A)2
- a.
- Although the Congressional situation is not yet entirely clear, we intend to do all we can to meet our military credit commitments to Iran and are continuing to attempt to persuade the Congress of the importance of our making military credits available to Iran.
- b.
- Congressional action so far would probably permit us to make available the next $50 million credit tranche, subject to the usual joint annual economic review.
- c.
- For the future, we are first going to have to feel our way with Congress during an election year. In this process this Administration like its four predecessors will remain dedicated to the principle of collective security for the free nations of the world. As we proceed, we ask for patience and understanding from our friends and partners in this effort.
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2. Oil (Tab B)
- a.
- The U.S. Government cannot dictate the commercial policy of private American firms.
- b.
- The American companies of the Consortium have always taken their commitments to the GOI seriously and we have every reason to believe that they will see that Iran gets its fair share of the Middle East increase in production. They have important interests in other countries of the area, and they and we believe that the moderate Arab countries deserve support.
- c.
- We hope that Iran will continue to deal with the oil companies within its policy of reasonableness that has paid such high dividends to the GOI in the past.
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3. Investment (Tab C)
- a.
- We very much appreciate the Shah’s kindness to Messrs. Ball, McCloy and Connor during the Coronation.
- b.
- We are pleased to note the Shah’s continued interest in obtaining American investment and hope that the steps being taken by the Development and Resources Corporation and by such people as Mr. Ball will lead to the desired results. We will continue to do all we can to assist such efforts.