891.50/4–2849: Telegram
The Ambassador in Iran (Wiley) to the Secretary of State
564. Embtel 558, April 26. Economic and social projects listed by Prime Minister on which there would be no controversy include: (1) agricultural, irrigation and well-drilling machinery; (2) asphalting [Page 513] main highways and extending secondary roads; (3) import of road and snow clearing machinery; (4) development of seaports; (5) build airports; (6) health program including piped water system.
Linking railways with Iraq and Pakistan is dubious. Tentative OCI conclusion is that completion railway to Tabriz should have first priority, then Meshed, and eventually connection with Turkish rail ways which would give short route from Azerbaijan to seaboard. Spare parts from Germany would rehabilitate 25 locomotives which would probably be adequate for immediate needs. Completion 2 international airports desirable but Office Civil Aviation is actively developing Tehran and Abadan and has recently obtained funds to complete program this year.
OCI feels experiments must be made with various artificial fertilizers before entertaining any projects for building fertilizer factories. Prime Minister’s proposal for wheat crop of 5,000,000 tons would be more than double present output. Although improved agricultural methods and bringing in more land will naturally en large wheat yield we believe emphasis should be on diversified crops to broaden diet rather than concentration on wheat. Regarding proposal hold one year stock of sugar and piece goods, government is currently negotiating for purchase 100,000 tons sugar which with existing stocks would provide more than year’s supply. Existing piece good stocks plus orders placed are probably equal to more than year’s consumption requirements.
Evaluation and conclusions follow.