891.20/5–2649: Telegram
The Ambassador in Iran (Wiley) to the Secretary of State
700. HSO yesterday informed General Evans, Chief ArMish, that a telegram has been received from Ala that $320,000,000 is being appropriated for direct aid to Greece, Turkey, Iran and others. HSO [Page 527] stated that 7 p. m. today General Evans was expected to submit to Shah complete list of additional matériel and equipment required for army of 300,000 which presumably will involve standing army of 150,000 and trained reserves 150,000.
General Evans does not see where present Iranian military budget could adequately support any such military establishment. He believes even present establishment too large for funds available. It is unlikely that Iran can afford much larger military appropriations than at present. He will however, comply insofar as possible with directive from Shah but will, I believe, explain his views quite frankly when he has audience.
Please pass to Armed Forces.