891.50 Seven Year Plan/5–2549: Telegram

The Acting Secretary of State to the Embassy in Iran

secret

482. Subsequent to drafting preceding tel1 re Saed ltr, Ala, on instrs FonMin, made official his oft repeated informal requests for US econ assistance. At our suggestion, Ala has agreed put Govt-authorized request in writing. In preparation formal note, Ala is in communication with his Govt re specific types assistance to be sought.

Since above approach apparently parallels Saed ltr, wld be helpful if we cld discuss that letr with Ala. Do you see objection?

Ala has sought informal advice Dept Rep in framing written re quest with view to posing as acceptable proposition as possible. He has been given our understanding OCI recommendations 7-Year Plan are comprehensive in nature and contemplate satisfaction Iran’s essential econ needs; furthermore, contemplated first-year $30 million investment not expected by either IranGov or OCI to require fon financial assistance. US technical assistance to Iran under Point Four Program, through UN agencies and directly, might meet Iran’s desire for demonstration US interest in Iran and, at same time, provide impetus to implementation 7-Year Plan. Ala has been told Point Four appropriations are expected available late summer at approx same time OCI report will have been considered by IranGov, which coincidence shld enable IranGov formulate justifiable pilot projects for which US might conspicuously provide technical assist.

Ala stated that he wld immed urge his Govt join FAO and ICAO, and authorize him communicate to Asst Secy Thorp Iran’s intention to apply for Point Four assistance in fields of health, agri, education, and transportation. He feels that greatest service to Iran might be rendered by integration such functional assistance into several area pilot demonstration projects on Near East Foundation pattern.

Webb
  1. No. 477, supra.