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

175. Memorandum From the President’s Special Assistant (Rostow) to President Johnson¹

Washington, August 31, 1966.

SUBJECT

• Letter from the Shah

The Iranian Ambassador had just delivered the Shah’s answer to your 20 July letter² and to your sending Tim Hoopes to talk about his arms purchases. We do not recommend a reply now because his letter completes the circuit for the moment. However, if you approve, we will ask Ambassador Meyer to tell him at an appropriate moment that you appreciated his letter and will be in touch with him later. Unless something unexpected comes up, your next letter would probably be later in the fall, confirming arrangements for a talk early next year.

The Shah has taken heart, I think, from our explicit recognition of the importance of stability in the areas surrounding Iran. He uses that recognition as an excuse for underscoring the importance of his security needs. He is appreciative of our help, which he realizes is a strain in view of our Vietnam commitment, but he states frankly that our $200 million credit still falls short of meeting Iran’s total requirements. He welcomes the prospect of a meeting with you early next year but does not sound as if he will press for more aid then.

We have come out of this exercise pretty well. Hoopes spelled out our problems in detail but couched them in sympathy for the Shah’s aims. The Shah has since assured Ambassador Meyer that he will buy no Soviet missiles and allow no Soviet military technicians into Iran. A Soviet military mission is in Tehran for talks this week, but he says he will buy only vehicles and maybe some simple ack-ack guns, if anything. He is buying some naval equipment from Britain, but our only objection to that is the possible impact on his development program. On that, we’ll just have to wait and keep an eye open to how the economy shoulders the burden of these arms purchases.

So while the Shah will increasingly move toward a position more independent of us, we have managed to keep him from jumping too quickly this time. Some independence is to be expected and is healthy. We just want to be sure he doesn’t go too far too fast and get us all in hot water. For the moment, we’ve succeeded.

Walt

Approve verbal acknowledgment³

See me

1. Source: Johnson Library, National Security File, Special Head of State Correspondence File, Iran, Shah Correspondence, Vol. II. Secret.
2. Documents 173 and 158.
3. This option is checked. In telegram 1277 from Tehran, September 21, Meyer reported that he had expressed to the Shah that morning the President’s appreciation for his August 15 letter. He also reminded the Shah that a DOD team was currently in Tehran negotiating with his officials and pointed out that the proposed military package should certainly meet with his satisfaction. (Department of State, Central Files, DEF 19–8 U.S.-IRAN)