287. Telegram From the Department of State to the Embassy in Iran1

168328. Subject: Iranian Arms Program.

1.
Assistant Secretary Battle briefed Iranian Ambassador Ansary May 21 on our arms program for Iran, stressing that briefing was for Ambassador’s background as Ambassador Meyer had made formal presentation to Shah.
2.
Battle also briefed Ansary on Congressional consultations on arms program. He said that two principal areas of Congressional interest were Iranian-Soviet relationship and Iran’s relations with its Arab neighbors. He said he had indicated to Senate Foreign Relations Subcommittee that Shah is well aware of Soviet aims and that although there are frictions in Gulf, we believe our arms program for Iran will assist area stability. Battle also said there had been questions about nature of military threat to Iran. He stressed that atmosphere of consultations had been very good and that there is warm feeling for Iran and Shah on Capitol Hill.
3.
In discussing Congressional consultations, Battle indicated there may be some Congressional repercussions as result forthcoming Soviet fleet visit to Iran.
4.
Battle also mentioned that New York Times has apparently acquired from Congressional sources information on our proposed arms program. He said it is likely story will appear May 22.
5.
Only point Ansary raised on arms program was Shah’s disappointment with $75 million limitation this fiscal year. Battle indicated that as Ambassador Meyer had told Shah we are trying to find additional funds.
Rusk
  1. Source: Department of State, Central Files, DEF 19–8 US–IRAN. Secret; Priority; Limdis. Drafted by Eliot on May 21 and approved by Battle. Repeated to CINCSTRIKE.