40. Telegram From the Department of State to the Embassy in Iran1
916. Joint State/AID/Defense message. Military modernization program discussed with Shah by DOD, State and AID reps on 6 June. Shah was told USG intends to be responsive to his military modernization requirements. DOD reps suggested consideration Cooperative Logistics Sales Agreement. Regarding tanks, Shah’s attention directed to M–48A3 as better priced substitute for M–60, which now very high priced because of curtailed procurement schedule. Regarding transport aircraft, we offered sale of four C–130’s on favorable credit terms for delivery by July 1965. There was less concrete discussion concerning other modernization items. Shah was pleased with general approach, requested further meeting with working level DOD on Monday, June 8, for more detailed discussion modernization plan, particularly possibilities for reduction in price of M–60 as result possible procurement by Iran.
At June 8 meeting, main emphasis was on tanks with Shah questioning sharply price and characteristics data. Shah requested another meeting in New York on 12 June at which time he would like to have firm information as to the availability of the M–48A3 tank with the 105[mm] gun and, if possible, to discuss a draft Cooperative Logistics Sales Agreement covering the entire modernization program. Shah at no time asked for details about credit availability or terms but assumed that this would be included in the discussion of a Cooperative Logistics Sales Agreement.
[Page 82]Other subjects covered in meetings (CINCSTRIKE Air Defense Study, Iranian economic development) to be covered in memcons.
- Source: Department of State, Central Files, DEF 19–3 US–IRAN. Confidential. Drafted by Tiger and General Eckhardt, cleared by Colonel Taylor and Bartlett Harvey (AID/PC), and approved by Talbot. Repeated to CINCSTRIKE/CINCMEAFSA, and CINCSTRIKE/CINCMEAFSA for POLAD.↩