891.00/10–1846

Memorandum by the Director of the Office of Near Eastern and African Affairs (Henderson) to the Under Secretary of State (Acheson)

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There is attached hereto a memorandum prepared in this Office reviewing the background of events in Iran and suggesting certain [Page 534] action which, if taken, might strengthen the hands of this Government in its efforts to preserve the independence of Iran and to prevent that country from succumbing to Soviet pressure and thus passing completely into the Soviet orbit of satellite states.

You will note that these suggestions include (1) the extension of credits to Iran for the purpose of financing specific approved development projects which have for their general purpose the raising of Iranian standards of living and (2) the sale to Iran of a limited amount of nonaggression military equipment to enable the Iranian authorities to maintain internal order.

We feel that unless we show by concrete acts that we are seriously interested in carrying out our various assurances to Iran, the Iranian Government and people will eventually become so discouraged that they will no longer be able to resist Soviet pressure. If the suggestions contained in the attached memorandum are approved at the highest levels of the Department, it will be much easier for the various Offices to solve the problems which arise daily with regard to Iran.

It will be observed that the memorandum is devoted primarily to long-term policies. We are faced at the present time, however, with an extremely critical situation in Iran which may require quick action on our part. Recent telegrams from Tehran are causing us deep concern. It has become clear to our Ambassador and to us that Qavam is now virtually a prisoner of his own policy of retreating before Soviet pressure and that Iran is daily losing what remains of its independence. The Shah apparently is alarmed at the situation and is considering utilizing the authority vested in him by the Iranian Constitution to dismiss Qavam and appoint a new Prime Minister.… We have been hoping that at a given point Qavam would show the required degree of firmness, but have reluctantly come to the point of view that Qavam has become so enmeshed in Soviet intrigue that he is no longer in a position to act as defender of the independence of Iran.

It is quite possible that within the next few days the Shah will remove Qavam and appoint a new Prime Minister. If such an event should take place, in our opinion we should at once give to the new government all appropriate moral support and at the same time make it clear that we are now prepared to extend to Iran the economic assistance which we have been promising for the last three years.

There is at the present time in Washington an Iranian military mission, headed by a Brigadier General, which is endeavoring to purchase on credit $10,000,000 worth of nonaggression military equipment. Thus far, we have been noncommittal with regard to this request. We can not delay giving a reply much longer. In case the Shah should appoint a new Prime Minister, it seems to us that we should indicate our willingness to sell at least a certain amount of [Page 535] this type of equipment to Iran at once.1 It is our understanding that the Export-Import Bank has no authority to advance credits for the purchase of arms. Our suggestion, therefore, is that we sell such surplus noncombat military equipment as is obtainable to Iran on credit and a reasonable amount of nonaggression, combat equipment for cash.1 A separate memorandum on this subject is being prepared.

Loy W. Henderson
[Annex]

Memorandum Prepared in the Office of Near Eastern and African Affairs

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Implementation of United States Policy Toward Iran

[Here follows background material.]

In brief, the Iranian question transcends the mere bilateral relations between Iran and the United States. Politically, it involves our policy of supporting the independence of small countries in the spirit of the United Nations. Strategically, it involves the defense of our military interests in the entire Near and Middle Eastern area, having particular relevance to the position we have taken with regard to Turkey. Both the political and strategic aspects of this problem are an integral part of the broader question of United States relations with the Soviet Union.

These political and strategic interests require that we should give positive encouragement and assistance to Iran in an endeavor to save it from falling completely under Soviet domination and to rescue it if possible from its present state of partial subservience to the Soviet Union. In implementation of our declared policy toward Iran and of our moral commitments under the United Nations Charter, it is recommended that the following steps be taken by this Government:2

1.
Ambassador Allen be authorized to express to the Shah and the Prime Minister on appropriate occasions the genuine interest of the United States in the independence of Iran and assure them that this Government is prepared, so long as the Government of Iran sincerely desires independence and is willing to stand up for its sovereignty against external pressure, to support the independence of Iran not only by words but by appropriate acts.
2.
This Government be prepared to extend an Eximbank loan to Iran to enable the carrying out of specific approved development projects, the execution of which will tend to raise Iranian standards of living.
3.
This Government furnish, in reasonable quantities, arms and ammunition requested by the Iranian Military Mission presently in [Page 536] this country, for the purpose of maintaining internal security. This view is supported by recommendations of the Joint Chiefs of Staff, as follows: “The United States should accede to Iranian requests for non-aggression items of military material, in reasonable amounts, to enable the Iranian Government to maintain internal security, in view of the fact that Iran cannot supply its own military needs as they have no established sources for security supplies. They (JCS) consider such non-aggression items of military material as small arms and light artillery, ammunition, small tanks, transportation and communication equipment, quartermaster supplies, and perhaps short range aircraft and naval patrol craft, to be appropriate for release to Iran in reasonable quantities upon the request of Iran, so long as the United States is satisfied that Iran demonstrates a desire to maintain its independence in the community of nations. Technical advice given unostentatiously and on request would also be appropriate and contributory to the defense of United States strategic interests in Iran and the Near and Middle East area.”
4.
United States military missions in Iran be supported and strengthened, and legislation permitting their detail beyond the period of national emergency should be supported before Congress.
5.
Information and cultural relations between Iran and the United States should be intensified by a well-executed program.

These recommendations are based on the assumption that Iran still possesses a degree of independence and that the Iranian Government is working for the true national interests of the country. Should the course of events cause us to believe that the assumption no longer holds, the recommended acts would of course not be taken but held in abeyance.

  1. Marginal notation by the Secretary of State: “OK J.F.B.”
  2. Marginal notation by the Secretary of State: “OK J.F.B.”
  3. Marginal notations indicate the Secretary of State’s approval of these steps.