Foreign Relations of the United States, 1961–1963, Volume XVII, Near East, 1961–1962

239. Memorandum for the Record⁰

Washington, April 9, 1962.

Second Preparatory Session for the Shah’s Visit—9 April, 1962¹

Secretary McNamara, after pointing out that the Shah was apparently going to focus his pleas on Iran’s need for modern airpower, described a way in which we could meet these needs without going over the $330 million ceiling. He proposed, subject to further checking, that we rejuggle the package to give Iran four squadrons of N–156 fighters, some sort of improved airfield in eastern Iran, and possibly also some early warning radar. To permit this we would drop out two frigates and two minesweepers for a saving of $10 million. The Secretary also believed that we could save $28 million by recalculating the maintenance costs within MAP for Iran since these seemed excessive. Ambassador Holmes agreed that this would be a much better package. The President approved going ahead on this basis.

It was clearly understood that a five year package along the above lines would be contingent upon a force cut to 150,000 men. Ambassador Holmes believed that the Shah would accept such a reduction.

Mr. Gaud stressed the importance of not talking solely about military matters with the Shah, but of impressing upon him the key role of economic development and telling him that if the 3rd Plan looked good we would make a substantial contribution. The President agreed that he would not neglect the economic side in his discussions with the Shah.

The President was told about the proposal to offer to finance the Bandar Abbas port project,² as a token of our interest in the 3rd Plan. Either he or Secretary Rusk will mention this to the Shah.

The President again asked about our commitments to come to the support of Iran. There was discussion of the Eisenhower 1958 letter. No conclusion was reached as to whether we should go any further in statements indicating commitments to come to Iran’s assistance, since Ambassador Holmes did not believe that this issue was likely to be posed in such a manner.

R.W. Komer

0. Source: Kennedy Library, National Security Files, Country Series, Iran Subjects: Shah Visit, 4/7/62–4/10/62. Secret. Drafted by Komer.
1. Handwritten notes of this meeting by General Lemnitzer indicate the following attended: the President, Ball, McNamara, William Bundy, McGeorge Bundy, Lemnitzer, Talbot, Komer, Gaud, and Holmes. (National Defense University, Lemnitzer Papers) Attached to the notes are summaries of planned deliveries of military equipment to Iran, July 1, 1962, through June 30, 1967, and of equipment to be delivered to Iran, July 1, 1962, through July 1, 1967. For the final text of the first list, see Annex A to Document 248.
2. In an April 5 memorandum to Secretary Rusk, Bowles strongly recommended that, in discussions with the Shah, U.S. officials make clear the importance the United States attached to the Bandar Abbas port project, which could be used by Afghanistan to obtain an outlet to the sea through Iranian territory and thus provide Afghanistan with an alternative to seeking access to the outside world through the Soviet Union. (Department of State, Central Files, 988.734/4–562)