788.5 MAP/3F–1350: Telegram

The Ambassador in Iran (Wiley) to the Secretary of State


432. Tomap. Lunched today with Ardalan acting Foreign Minister and informed him of excerpts Deptel 265 March 10, 19501 re Iran Emb Washington remarks on MDAP agreement. He expressed amazement and said statements (first paragraph urtel) were not in accord with the instructions sent by the FonOff to Washington Embassy. He indicated clearly that agreement can be effected on basis exchange of notes without submission to Majlis. He then handed me a “proposed draft for an exchange of notes” which he said should be considered only as working paper, though it already had the approval of the Prime Minister. He hopes to airpouch his draft to Washington Embassy Monday. If his proposed draft meets with Department’s approval Ardalan would like to submit draft to Shah on latter’s return and to the Council of Ministers.

He stated that the draft was practically identical with the Department’s draft except for Iranian objection to accepting commitment to future legislation enacted in US. He also said he thought it would be necessary to excise the financial clause from the secret minute.2 Following is text Ardalan’s draft:

“Upon the instruction of my Government I have the honor to refer to the conversations which have recently taken place between the representatives of our two Governments concerning the military assistance (handing over of equipment and materials as well as services needed for use or repair of such equipment and materials) by the Government of the US of America to the Government of Iran pursuant to US Public Law No. 329 (81st Congress) and to confirm the understandings reached as a result of those conversations as follows:

The Government of the US, recognizing this principle that economic recovery is essential to international peace and security and must be given clear priority, undertakes to make or continue to make available to the Government of Iran on a grant basis such equipment [Page 486] materials and services as the Government of the US may authorize. The furnishing of any such assistance as may be authorized hereto shall be consistent with the charter of the UN and shall be subject to all of the applicable terms and conditions and termination provisions of the Mutual Defense Assistance Act of 1949. The two Governments will, from time to time, negotiate detailed arrangements necessary to carry out the provisions of this paragraph.
The Government of Iran undertakes to make effective use of assistance received pursuant to paragraph 1 for the purposes for which such assistance was furnished and will not devote such assistance to purposes other than those for which it was furnished.
In the common security interest of both Governments, the Government of Iran undertakes not to transfer to any person not an officer or agent of such Government or to any other nation title to or possession of any equipment, materials or services received on a grant basis pursuant to paragraph 1, without the prior consent of the Government of the US.
The Government of Iran, after giving due consideration to reasonable requirements for domestic use and commercial export of Iran, agrees to facilitate the production, transport, export and transfer to the Government of the US, for such period of time, in such quantities and upon such terms and conditions as may be agreed upon, of raw and semi-processed materials required by the US as a result of deficiencies or potential deficiencies in its own resources, and which may be available in Iran.
(a) The Government of Iran will take appropriate measures consistent with security to keep the public informed of operations pursuant to these understandings.
(b) Each Government will take such security measures as may be agreed in each case between the two Governments in order to prevent the disclosure or compromise of classified military articles, services or information furnished by the other government pursuant to these understandings.
The Government of Iran except as may otherwise be agreed between the two Governments, grants duty-free treatment and exemption from internal taxation on importation or exportation to products, property, materials or equipment imported into its territory to equip the armed forces of Iran in connection with this understanding.
The Government of Iran agrees to receive personnel of the Government of the US who will discharge in its territory the responsibilities of the Government of the US under these understandings and to make available to them the necessary facuities.
The two Governments will, upon request to either of them, negotiate appropriate arrangements between them respecting responsibility for patent or similar claims based on the use of devices, processes, technological information or other forms of property protected by law in connection with equipment, material or services furnished pursuant to paragraph 1. In such negotiations, consideration shall be given to the inclusion of an understanding whereby each Government will assume the responsibility for all such claims of its [Page 487] nationals and such claims arising in its jurisdiction of nationals of any country not a party to these understandings.
The two Governments will, upon the request of either of them, consult re any matter relating to the application of these understandings or to operations or arrangements carried out pursuant to these understandings.
Nothing herein shall be construed to alter, amend or otherwise modify the agreements between the US of America and Iran, signed at Tehran November 27, 1943, and October 6, 1947, as amended or extended.

This letter and the reply of the Government of Iran thereto indicating acceptance thereof will be considered an agreement between the Government of the US of America and the Government of Iran, entering into force upon receipt of the reply of the Government of Iran, and will be registered with the Secretariat of the UN”.

Our comments follow:

Preamble: Since it merely puts us on record as having discussed the “services needed for use and repair of such equipment and materials”, the changes proposed appear harmless.

Paragraph 1: Ardalan draft does not commit Iran to provisions of future and hence unforeseeable legislative acts of US as he indicated to me (see above). This change appears reasonable. Ardalan draft also clearly indicates that material furnished is to be given, not merely made available, to Iran. Unless contrary to legal provisions, see no objection to acceptance this idea. Omission of phrase “under such terms and conditions as may be agreed upon between the Governments” does not appear vital since the terms and conditions are stated in the paragraph.

Paragraph 2: Though it makes the provision even more restrictive, the omission is not detrimental to US and probably face saving to Iran.

Paragraph 4: Ardalan draft states that Iran’s reasonable requirements shall be considered before agreeing to “facilitate production”, etc., not merely that, as in US draft, arrangements for transfer itself shall be given due regard etc. This appears reasonable.

Paragraph 6: Omission word “will” believed typographical error.

Paragraph 7: Ardalan version could perhaps deny US representatives facilities to observe the progress of the assistance furnished, etc. Recommend adherence to US version.

Ardalan has, I think, tried sincerely and well to work out things in order to permit solution without necessity Majlis ratification.

Department inform Army, Navy, Air.

  1. Not printed; it reported that the Iranian Embassy informed the Department of State that the Embassy believed any agreement committing Iran to a definite course of action required ratification by the Majlis. The Department instructed the Embassy in Iran to obtain Ardalan’s oral views on the U.S. draft MDAP agreement, if he was unable to provide a counterdraft. (611.88/3–850).
  2. The Department of State draft note and secret minute of negotiation are quoted in telegram 140, February 8, to Tehran, not printed (788.5 MAP/2–850).