54. Telegram From the Embassy in Iran to the Department of State1
451. Embtel 430.2 On Oct 25 Majlis approved bill authorizing $200 million USG-guaranteed credit from US banks for purchase military equipment. Majlis approval was unanimous following Prime Minister’s briefing in closed session and strong statement in open session. Bill sent to Senate for its “observations” (under Article 46 of constitution Majlis has final word on money bills), after which it returns for second reading.
Prime Minister’s statement advocating passage of credit bill for improving Iranian military posture referred emphatically [to] the “threats against Iran’s interests in the Persian Gulf.” This was clear reference, as one paper put it, “the claims to Khuzistan Province by Arab radio stations and newspapers linked the regime of Nasser.” Mansur made it clear that GOI regards developments in Middle East as currently posing greatest threat. In contrast, in referring to recent changes in Soviet Union he reportedly described U.S.S.R. as “our northern neighbor which has for years adopted a policy of peaceful coexistence” and expressed hope that “political, economic and cultural ties would continue to grow strong.”
Mansur also expressed appreciation for U.S. aid since World War II and claimed that credit commitments would not detract from development needs and that defense expenditures being kept at lowest possible levels. With reference to CENTO allies he said that “there have not been and will not be any changes in the policies of our CENTO allies.”
[Page 108]All major press editorials dealt with subject of credit bill and all follow explicit or implicit anti-Nasser line. For example, English-language Tehran journal headlined “Nasser Forces Military Loan” and made passing reference to UAR “Russian-equipped soldiers.”
We understand that deputies who had talked against govt during recent status bill debate went out of their way this time to compliment govt for its handling of country’s defense needs. Word has been passed down last week that Shah wanted credit bill passed by Oct 26, and no nonsense.3
- Source: Department of State, Central Files, DEF 19–3 US–IRAN. Confidential. Sent also to DOD for Kuss. Repeated to Baghdad, Kuwait, CINCSTRIKE for POLAD, Ankara, Cairo, Karachi, London, and Moscow.↩
- Dated October 20. (Ibid.)↩
- Airgram A–303 from Tehran, December 15, reported that the “coincidence” of having the parliamentary vote on the status of forces bill followed within 2 weeks by the unanimous vote to accept a $200 million credit from U.S. commercial banks for the purchase of U.S. military equipment had contributed to the widespread belief that in some way the passage of the status bill was the price exacted by the United States for the granting of the credits in question. (Ibid., DEF 15–3 IRAN-U.S.)↩