Office of the Historian

166. Memorandum From the Joint Chiefs of Staff to Secretary of Defense McNamara1

JCSM–498–66
Washington, August 1, 1966.

SUBJECT

  • Military Sales to Iran (U)
1.
(S) Reference is made to JCSM–240–66, dated 15 April 1966, subject: “Report of US Military Survey—Iran (C),”2 wherein the Joint Chiefs of Staff informed you of their concurrence in the conclusions and recommendations of a tri-Service team which surveyed the equipment needs of the Imperial Iranian Armed Forces. This concurrence was based on a recognition of the need to maintain the primacy of the U.S. military presence in Iran.
2.
(S) The Joint Chiefs of Staff are concerned that the Shah of Iran is dissatisfied with current U.S. offers to sell military equipment he deems essential for Iran’s defense. He already has initiated action to procure certain equipment including SAMs from the Soviets. Recent messages from the Ambassador, CINCSTRIKE/USCINCMEAFSA, and the Chief, ARMISH/MAAG, indicate that the US offers must be more forthcoming if a major Soviet entry into Iran, with all its attendant disadvantages, is to be prevented.
3.
(S) In view of this possibility and the serious deterioration in US/Iranian relations which could result, the Joint Chiefs of Staff:
a.
Reaffirm their judgment that it is essential to maintain the primacy of US military interests in Iran and that every effort should be made to prevent the Soviets from gaining a foothold through the introduction of military equipment and technicians into Iran.
b.
Recommend support of reduced costs, to include the waiving of R&D costs on all items contained in the approved equipment requirements, in order to make this judgment meaningful in light of the circumstances mentioned.
c.
Further recommend an offer of two squadrons of sixteen each F–4C aircraft at reduced cost with delivery to commence late in calendar [Page 304] year 1968. This offer requires inclusion of additional procurement funds for F–4E aircraft in the Air Force supplemental FY 1967 budget.3
For the Joint Chiefs of Staff:
David L. McDonald
Acting Chairman
Joint Chiefs of Staff
  1. Source: Washington National Records Center, RG 330, OSD Files: FRC 70 A 4443, Iran 091.3 MAP, 1 Aug 66. Secret. A stamped notation on the source text reads: “SecDef has seen Brief.”↩
  2. Not printed.↩
  3. On August 23 Acting Secretary of Defense Vance sent the Chairman of the Joint Chiefs of Staff a memorandum noting that he shared the JCS concern over the implications of the Shah’s dissatisfaction with U.S. unwillingness to sell Iran military equipment he deemed essential for Iran’s defense. Vance said that following a Defense-State-White House review, they had decided to offer the Shah several new concessions, including waiver of R and D charges on all items and two squadrons of F–4s. These had been conveyed to the Shah the previous week by Hoopes, and it appeared that the Shah now felt that the U.S. offer met most of Iran’s needs, although it was not certain that this would forestall his purchase of Soviet anti-aircraft missiles. (Washington National Records Center, RG 330, OSD Files: FRC 70 A 4443, Iran 091.3 MAP, 23 Aug 66)↩