343. Telegram From the Chairman of the Joint Chiefs of Staff (Radford) to the Secretary of Defense (Wilson)1
BD 443 from Chairman Joint Chiefs of Staff. During my visit to Iran, I have had opportunities to meet and talk with Iranian officials, both civilian and military, as well as the members of our own Country Team. From what I have heard and seen, it is apparent that Iran has made a remarkable comeback from her low point 2 years ago. Her present firm alignment with the West is almost entirely due to United States efforts and assistance, and the Iranian people from the Shah on down give us full credit. Our programs for financial assistance have necessarily often been on a crash basis during the past 2 years and will continue that way unless we can evolve with the Iranians a sound program of economic development and budget control. Unlike some other countries, the Iranian Govt is not only willing but anxious to receive detailed help and advice. I urge that you discuss this with Sec of State and Under Secretary of State and propose that some outstanding American, such as Joe Dodge, be sent to Teheran in the near future to work out a long range program. There is every reason to believe that Iran has the resources and the capability to establish a sound economy within the next few years. It is equally evident that another financial crisis is due some time around the end of February, and we should firm up our own plans before that time.
From a purely mil point of view, Iran is a valuable ally and most cooperative. I was impressed with the personnel of our MAAG and the standing which it enjoys with the Iranian Govt as well as with our other US representatives. The Iranian armed forces have a long way to go to come up to our own standards, but it is evident that they are trying hard and have made great improvement under MAAG guidance.
[Page 793]I do not intend to send report on individual countries as I go along, but felt that the situation in Iran could become critical before I returned and that from a defense point of view we cannot afford to lose time in deciding what we are going to do in the economic field which is the key to the basic problem of keeping Iran aligned with us.
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Source: National Archives and Records Administration, JCS Records, CCS 092 (8–22–46) (2). Top Secret. Sent as Naval message 6198, ALUSNA Baghdad to the Secretary of Defense for the information of the JCS.
Radford was on a tour of military installations and personnel in the Near and Far East. See Document 97.
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