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

182515. Subject: Shah’s Visit to U.S.

1.
Shah arrived New York June 10, Washington June 11, proceeds Cambridge for Harvard honorary degree June 12, St. Louis to visit McDonnell-Douglas Aircraft Corp June 13, Chicago University June 14 to dedicate building in his name and financed by him, and New York June 15.
2.
New York visit June 10–11 highlighted by background conference with leading editors, meeting with top-level financial men, and lunch with U Thant. Financial meeting was especially useful in terms drawing attention to Iran’s burgeoning economy and investment opportunities, although Shah made special point that foreign firms investing in Iran can have no better than 50–50 arrangement.
3.
In Washington President gave large dinner June 11 in Shah’s honor and had discussions with him that evening and also following morning. Public remarks at dinner and private discussions reflected warm and close friendship of the two men and their countries. Shah also met with Secretary Rusk and with Dillon Ripley of Smithsonian Institution in connection with scientific cooperation between Iran and US.
4.
Principal substantive subjects on Shah’s mind in Washington talks were (a) need to bolster Iran’s defense capabilities in light forthcoming British departure from Persian Gulf and (b) desire of Iran to sell additional oil to US on barter basis. Talks also reviewed general world situation including Soviet policies in Eastern Europe, Korea and Vietnam, and current situation in Near East. As in previous visits of Shah to Washington, exchanges on world affairs were full and frank, with basic similarity of views on both sides.
5.
In light private nature of visit, press coverage has not been as great as during last August’s official visit. Press has speculated primarily on military discussions.
6.
About 100 students demonstrated on Shah’s arrival at Waldorf in New York but were not seen by Shah or party. Two or three students appeared opposite Blair House on one occasion when Shah was departing for Blair House.
Rusk
  1. Source: Department of State, Central Files, POL 7 IRAN. Secret. Drafted by Eliot on June 12. Cleared by Rockwell and Saunders and approved by Battle. Repeated to London, Jidda, Ankara, Rawalpindi, Kuwait, and CINCSTRIKE.