There is attached a copy of a letter to the Director of the Foreign
Operations Administration which endorses your request and recommends
specific consideration of an additional allotment of $9.5 million for
Iran.
[Attachment]
Letter From the Acting Secretary of State to the Director of the
Foreign Operations Administration (Stassen)4
Washington
,
June 23,
1955
.
Dear Mr. Stassen
: The Assistant Secretary of Defense
wrote the Department of State on May 14, 1955, requesting support of
the Department of Defense’s request for consideration of increased
allocations of defense support and direct forces funds for Iran.
Enclosed with the letter were copies of a letter to you dated May
14, 1955, and a memorandum dated April 12, 1955, from the Joint
Chiefs of Staff on the same subject. I understand that copies of
these communications were directed to you.
[Page 744]
I am pleased to note the affirmative attitude of the Department of
Defense and the Joint Chiefs of Staff regarding additional defense
support and direct forces aid for Iran and I concur in their views.
I suggest that, if agreeable to you, there be consultations between
your Agency and the Departments of Defense and State as to the
extent of further aid desirable.
I appreciate that over–all demands may prohibit providing the total
funds requested by the country team in Tehran’s telegram 1948
referred to by the Department of Defense. However, I would like to
suggest that the interagency discussions particularly consider the
country team’s priority request for $9.5 million to initiate certain
self–contained military projects. This request was originally
designed to accelerate improvements in Iran’s military establishment
by getting started this fiscal year. Although this Department had
previously hoped that an additional program could be financed from
current fiscal year funds, it now understands that such funds are
not available. It therefore recommends that planning be started at
an early date, looking to a prompt decision regarding providing
funds for Iran from next fiscal year’s money.
There are distinct advantages to making these funds available
promptly. As elaborated in Secretary Dulles’ letter of November 8, 1954, to the Secretary
of Defense, there exists a favorable situation in Iran for advancing
the country’s defensive capabilities as well as its closer
cooperation with its neighbors in the free world. However, this
favorable situation cannot be expected to remain static. Prompt
assistance by us will enable Iran, and provide the incentive for
Iran, to move forward with its own plans for increased military
expenditures in coordination with United States assisted
projects.
Sincerely yours,
