761.91/7–748: Telegram
The Ambassador in Iran (Wiley) to the Secretary of State
777. Saw Prime Minister for nearly an hour and Shah for nearly two hours yesterday afternoon. Thoroughly covered ground as outlined in Deptel 628, July 5. Prime Minister, I think is in complete agreement.
Shah insisted Ala has repeatedly urged denunciation Article Six Treaty 1921. Ala had informed him that Department has frequently complained to him of lack of clarity, vacillation and indecision of Iranian foreign policy. Shah could not understand this since he considers Iranian policy has been forthright and courageous. He claimed that none of smaller countries of world has stood up more resolutely to USSR than Iran. However, I am sure Shah will stay on beam as indicated by Department. If, however, there are more Soviet incursions Shah wants to give publicity in purely factual manner without anything sensational and no propaganda. Publicity already given to previous incidents has, in opinion both of Shah and Prime Minister, had wholesome effect on Russians.
[Page 157]Both Shah and Prime Minister are most eager to accomplish something quickly for betterment conditions of under privileged. Objective is clearly political. Shah believes that some money will be forthcoming from AIOC but both he and Prime Minister are very eager to get some credits from US for immediate shipment cotton textiles and sugar. Shah claims prompt importation foregoing commodities would have “tremendous effect” on Iran. Shah is also very interested in importing American agricultural machinery. Both Prime Minister and Shah seem very pessimistic about feasibility of using Iranian financial resources in spite of what appears to be more than flourishing condition of Bank Melli and good condition governmental finances. Shah is very anxious to have arms credit agreement signed soonest.
He claims Iran Army need for ammunition, especially 7.9, is most urgent. He states that with present supplies Iran Army should fight only a comparatively short time.