222. Background Paper Prepared in the Department of State1
VISIT OF THE SHAH OF IRAN
August 22–24, 1967
ANTI-SHAH ACTIVITIES IN THE U.S.
Students
Several hundred of the Iranian students in the United States are ardently and volubly opposed to the Shah. Dissidents, working principally through the Iranian Students Association, have for many years carried on an intermittent campaign of protest against the Shah’s regime and have succeeded during previous visits by the Shah in provoking public incidents insulting to the Shah. They have also enlisted American civil liberties groups and “ultra-liberals” in publicizing accounts—some factual and some distorted—of restraints on personal liberty in Iran. These activities have caused continuous irritation in our diplomatic relations with the Shah and his Government.
Iranian officials know the limitations on our ability to restrain these anti-Shah activities so long as the Iranian dissidents do not violate U.S. laws. They also know that we have exerted extraordinary efforts to bring to justice or to deport such agitators wherever there is a legal basis for doing so. Fortunately, the number of irritating cases has been on the decline in recent months, but we cannot be sanguine about the prospects for [Page 408] avoiding altogether some organized protest or other efforts to embarrass the Shah during his current visit.
Gudarzian Case
A spectacular irritant in our relations with the Shah arose out of the activities of an Iranian promoter, Khaibar Gudarzian. “Khaibar Khan,” as he calls himself, three years ago published a sensational set of allegations of multi-million-dollar embezzlement including charges against members of the Shah’s family and involving AID activities in Iran. The allegations were repudiated by Senator McClellan after detailed inquiry conducted by the Senate Committee on Government Operations. Gudarzian nevertheless succeeded in tying up substantial bank accounts of the Shah’s brother and sister for many months until a Federal District Court ruled against Gudarzian last autumn. Gudarzian’s appeal to the U.S. Court of Appeals was rejected and his suit against the Prince and Princess has apparently been dropped.
The Justice Department has continued to review the possibility of criminal prosecution against Gudarzian. At the present time, however, Justice does not believe that any of the possible charges can be pressed successfully due to a variety of legal technicalities. The Department of Justice is continuing, however, to evaluate the case and will take action if it appears that an opportunity is presented.
Our immigration authorities have confirmed that Gudarzian is “out of status” and they have initiated proceedings designed to effect his deportation. This can be a lengthy process, taking a year or more, but the matter will be pressed as rapidly as administratively feasible.
- Source: Department of State, S/S Files: Lot 68 D 475, Visit of the Shah of Iran, August 22–24, 1967, Vol. I, Briefing Book, V–39–A. Confidential. Drafted by Newberry and cleared by Eliot and Rockwell.↩