218. Record of Briefing for the NSC Standing Group Meeting0

Mr. Talbot pointed out that the Shah was highly emotional and was particularly disturbed by what he thought to be our inclination toward being more generous to neutrals than to our allies. Mr. Talbot said that we very much need the Shah in the next few years. We need an increasingly reformist government in Iran and a controlled revolution there. Our primary task during the Shah’s visit will be to reassure Iran, and specifically the Shah. Uppermost in the Shah’s mind is the Iranian Military establishment. He feels that the US has no deterrent in the event of a Soviet attack on Iran. Our job is to convey to the Shah the US concept of global military strategy and of Iran’s place in this overall picture, attempting to convince him of the need for reductions and improvement of his armed forces.

Mr. Talbot pointed out that three recommendations had been made with regard to the aid level in Iran. The Kitchen Committee recommended a Multi-year program of $300 million dollars. State-Defense and AID have agreed on a Multi-year program of $330 million. Amb. Holmes recommends a program of $420 million, which he insists is essential to prevent the Shah’s abdication. The State-Defense-AID recommendations are on the President’s desk now. The President has deferred any decision until he has had a chance to speak with the Ambassador. The major difference between the $430 million and the $330 million program is the Shah’s desire for a sophisticated anti-aircraft defense system. Mr. Rostow pointed out that our military has no formal place for Iran in our War planning. The Shah definitely feels that he should have such a role. William Bundy in Defense is working on a paper that will endeavor to convince the Shah of the credibility of our global deterrent. Mr. Rostow stressed the importance of being able to say to the Shah that we are committed to defend Iran and have a significant capacity to do so. For, he pointed out, only if we can convince him of this can we proceed to talk to him rationally about his own forces. We must, said Mr. Rostow, convince our military to make this notion credible to the Shah. He suggested in this connection that the Shah be invited to see for himself [Page 540] STRAC forces in a demonstration of their capability, and that he be told that these forces are earmarked for the defense of such countries as Iran. Mr. McGhee emphasized that we can no longer stall the Shah; that this has been a blind, corrosive and dishonest dialogue. He agreed to the importance of having our military talk to the Shah about the STRAC forces. Mr. Rostow said that we view a Soviet attack on Iran as an unlikely contingency; that in the event of such an attack hostilities could probably not be confined solely to Iran; and we have units committed to defend Iran in such an unlikely eventuality. The criteria, he said, for the Iranian forces should be: A) an effective internal defense force; B) possessing a high civic action component; and C) able to fulfill some useful role in connection with the arrival of STRAC forces. He said that the Shah’s criteria for these forces were: A) Ability to sustain his throne within Iran; B) to provide the best possible defense against Soviet attack; and C) to provide a capability to take on Iraq and Afghanistan at the same time.

AID, Mr. Gaud stressed the importance of conveying to the Shah our view that the main threat to Iran is now an internal one. He said that the Third Plan seems to have broken down and that AID recommends against giving the Shah specific AID figures now. The real problem he said is one of organization and intent, not one of money. The Iranians seem to be afraid to make decisions and there is a very real need to talk toughly to the Shah. We must talk to him about our overall relations, not just about military needs. Mr. McGhee felt strongly that our program should be put to the Shah when he is here and he asked that W. Bundy be pushed to produce a convincing paper on our military policy before the Shah’s arrival so that we can work towards joint military planning with Iran.

Mr. McGhee asked Messrs. Talbot, Gaud and Rostow to accompany him at the NSC Standing Group Meeting.

PRESENT

  • M—Mr. McGhee, Mr. Cottman
  • S/S—Mr. Manfull, Mr. Studds
  • AID—Mr. Gaud, Mr. Kauffman, Mr. Bell
  • NEA—Mr. Talbot, Mr. Bowling
  • S/P—Mr. Rostow, Mr. Ramsey
  • INR—Mr. Hughes
  1. Source: Department of State, S/S-NSC Files: Lot 70 D 265, NSC Standing Group Meeting 3/23/62. Top Secret. Drafted by Bowling. The source text bears numerous handwritten additions and corrections; presumably the drafter missed parts of the conversation and someone filled in blanks and revised the text. According to a March 22 memorandum by Studds inviting several offices in the Department of State and AID to send representatives to this NEA briefing for Under Secretary McGhee, the briefing was to be held at 11 a.m. on March 23 in preparation for the Standing Group meeting scheduled for 2:30 p.m. that day. (Ibid.)