788.5 MAP/2–1650: Telegram
The Ambassador in Iran ( Wiley ) to the Secretary of State
275. Tomap. Drafts note exchange and secret minute of negotiation1 given Ardalan,2 UN Secretary Foreign Office. He was also informed re necessity Iran payment dollar cost living allowance and [Page 472] local rial expenses MDAP personnel. He is studying texts and will advise re legal obstacles, avoidance parliamentary action soonest.
Re part 4 Deptel 140, General Evans and I think that to obtain proper immunity and to divorce ARMISH entirely from MDAP, noncommissioned officers as well as officers should be assigned to Embassy. Officers would be accredited as attachés and NCO’s same as FSS employees. ARMISH should be responsible for supply and administration.
I still think it unwise to have Iran Government pay allowance of MDAP Embassy staff members and that it would be much wiser to take such dollar expenses out of MDAP funds. However, we have presented proposal as instructed.
Re part 5 Deptel 140, no way seen how Iran could provide funds without Majlis approval. Assuming transportation costs 20 percent of total, it appears that about two million dollars involved, with Iran’s proposed share about one million. Such funds not in military budget for next year, which is about to go to Majlis for approval. Army could not absorb any such sum with budget. It would constitute additional charge upon Iran for military establishment, and at expense economic development country. As regards possible Majlis action, it is well to recall difficulties and delays encountered in connection payment transportation costs of arms program. If Iran pays 50 percent transportation charges and Turkey does not, feeling in Iran re discrimination will be intensified. General Evans and I strongly urge that all transportation charges be met from MDAP funds, which was procedure envisaged when survey team was here and is basis upon which Iran program was worked out.
Shah adamant in insistence upon avoidance parliamentary action, fearing opportunity for demagogic and subversive demonstrations thus afforded. Ardalan does not believe real difficulty would be encountered in obtaining ratification. He thinks that perhaps best procedure would be to negotiate a bilateral having in its preamble statement that it would become effective upon signature but would require subsequent ratification. Such procedure under Iranian legislation would give legality to all acts performed from date signing to that ratification. However, Ardalan, pursuant Shah’s wishes, is exploring all possibilities concluding matter through simple exchange notes. I share Shah’s belief that matter should be kept out of Majlis.
It is still intended to hold discussions and negotiations in Washington.