187. Telegram From the Embassy in Iran to the Department of State 1

3258. General Conway’s Call on Shah. Ref: Tehran 3202.2

1.
General Conway, CINCSTRIKE, and I had nearly one hour audience with Shah 15th. We were accompanied by Ambassador Bell, Admiral Blackburn and General Jablonsky. Shah took occasion to reiterate his well-known views re importance Iran having adequate defense capability.
2.
Shah discussed changes taking place in the world and in this region. He made clear that Iran continues to value its friendships and alliances. Russian tactics may have altered but until Moscow renounces its desire to see world dominated by communism Iran and other non-Communist countries must remain “attentive.”
3.
Shah reiterated his usual theme that if Soviets cross Iranian border there will be world reaction. More imminent threat in his opinion is that in Persian Gulf area. British have reaffirmed their determination to leave Aden in 1968 and, although they are increasing their capability at Sharja and Bahrein, these measures are minimal and probably will last only few years. He implied from reductions in MAP aid that USG also has lessened interest in this area. He considered threat as coming from “rectangle” of Cairo, Yemen, Somalia and Ethiopia, noting that latter two countries are going through rather critical phase.
4.
Shah reiterated his intention to have modernized adequate defense capability and disclaimed any thought of territorial aggrandizement. He noted that large quantities of Russian arms continue to flow to countries like Egypt, Syria and Algeria. With such build-ups by aggressive neighbors, countries like Iran cannot confine themselves merely “to prayers and saying mass.” He had hoped to maintain exclusive U.S. supply pattern, but with obvious reluctance of USG to supply all his needs Iran has had to resort to other sources. Nevertheless, he still values US-Iran military cooperation, including good work of ARMISH/MAAG.
5.
In stressing determination to assure security of Gulf area, Shah mentioned Iran is staying in tough with Saudis. Also in interest of regional security, Iranian cooperation is developing bilaterally with both Turkey and Pakistan.
6.
General Conway explained purpose of his visit was to gain first-hand familiarity with countries for which CINCSTRIKE has responsibilities, [Page 353] both from contingency basis and with regard to MAP assistance. He noted that in about one month he will be required to testify on Capitol Hill where opinion is running heavily against military programs, grant or sales. Ambassador Meyer noted that Indo-Pak hostilities had been among the developments which have colored Congressional thinking and there is widespread sentiment in the United States, particularly in Congress, that it is morally wrong for USG to fuel arms races in developing countries when their limited resources were better spent on vital economic development. Shah expressed view that had it not been for USG military cooperation with Pakistan and India hostilities would have broken out earlier and cessation would not have been achieved as quickly as it was. He expressed regret that members of Congress do not see that their attitude endangers countries with peaceful intentions like Iran and Morocco while playing into hands of aggressive ill-intentioned countries. All this led to discussion re possibilities of securing Soviet cooperation re limitation of arms supplies to developing countries. Shah saw no prospect of such Soviet cooperation in foreseeable future.
7.
General Conway alluded to Shah’s implication that USG interest in this area is lessening and said this not so. He added that contrary to some press speculation re effects of US commitments in Vietnam, USG military capability remains ample to play role in other contingencies should that be necessary. Shah indicated he already aware of this, but he wondered about Washington’s political readiness to get involved in future brush fires.
8.
There was brief discussion of Soviet interest in natural gas from Iran and more recently a Soviet offer to buy oil. Shah noted that new Soviet pipeline being built to Europe (info supplied via Alam, reftel) but saw some advantage in having power as large as USSR heavily dependent on small country like Iran for commodity like gas. Ambassador pointed out rich foreign exchange rewards Soviets would gain. This obviously on Shah’s mind for he spoke vaguely of demanding from Soviets some “triangular” transaction whereby Iran would gain certain additional benefits. He also mused about the costliness of a pipeline direct from Iran to European natural gas market. Shah also noted how Romania in particular and to lesser extent Czechoslovakia are defying Soviet desires for maintaining Soviet economic hegemony over European satellites. In general Shah said efforts at bridge-building with Eastern European countries are desirable provided vigilance is maintained.
9.
At conclusion of audience, Ambassador Meyer made brief reference to UPI story revealing Soviet-Iran arms deal. Shah said two things bothered him: a) disclosure should first have been from Tehran; and b) Iran was portrayed as kicking over CENTO traces while Turks are resisting Soviet blandishments. Re latter point, he said answer is simple i.e. Turks still receiving large-scale grant aid from US. He agreed, however, [Page 354] that UPI leak was not totally without benefit, noting points along this line which I had made to Alam earlier (reftel).
Meyer
  1. Source: Department of State, Central Files, DEF 19–6 U.S.S.R.-IRAN. Secret; Limdis. Repeated to Moscow and CINCSTRIKE/USCINCMEAFSA.
  2. Dated February 12. (Ibid.)