Foreign Relations of the United States, 1964–1968, Volume XXII, Iran

168. Memorandum From the President’s Special Assistant (Rostow) to Secretary of State Rusk and Secretary of Defense McNamara¹

Washington, August 2, 1966.

This is to record the decision made by the President today that:

1. Mr. Townsend Hoopes would proceed to Tehran to explain to the Shah the budgetary limitations on our military aid; the nature and rationale of our administrative procedures in military aid; the non-discriminatory character of our price offers to Iran in the present package; and other elements which determine our position as set forth in the President’s letter to the Shah of July 20, 1966.

2. Mr. Hoopes would be empowered to tell the Shah that we shall deliver military equipment to him under our various agreements on an accelerated basis.

3. He would be empowered also to say that, in response to the Shah’s request, we are prepared to eliminate from the price of the Hawks the R&D costs imputed in our original offer.

W.W. Rostow

1. Source: Johnson Library, National Security File, Country File, Iran, Memos & Miscellaneous, Vol. II, 1/66–1/69. Secret. A handwritten notation on the source text indicates that a copy was sent to Hoopes.