Office of the Historian

295. Memorandum of Conversation1

Washington, June 12, 1968, 11 a.m.

SUBJECT

  • Iran’s Military Needs

PARTICIPANTS

  • H.I.M. Mohammad Reza Pahlavi, Shahanshah of Iran
  • H.E. Hushang Ansary, Iranian Ambassador
  • The Secretary
  • The Honorable Lucius D. Battle, Assistant Secretary, NEA
  • The Honorable Armin H. Meyer, Ambassador to Iran
  • Mr. Theodore L. Eliot, Jr., Country Director for Iran

The Shah said that it is necessary for Iran’s defense forces in the Persian Gulf area to be ready by the time the British leave the Gulf. He expressed particular concern about Iran’s having the capacity to deal with the missile boats that Iraq is receiving and to be able to counter the psychological boost given the Soviet Union through their fleet visits. He could not foresee Iran’s having in the near future sufficient naval forces to cope with these problems because Iran has insufficient trained manpower. He looked instead to a combination of naval craft, aircraft and land-based missiles to take care of his country’s needs in the Gulf.

The Shah referred specifically to his need to obtain technicians from the US to assist Iran in maintaining the F–4’s which will soon be received from the United States. He also referred to the need to carry through with the aircraft control and warning project in south Iran and also the national communications project.

The Shah stressed that he must be able to plan militarily several years in advance and therefore needs assurance from us that we will be able to meet his needs over such a period. Responding to the Secretary’s comment that we are now in our annual hassle with the Congress on our military assistance and sales programs, the Shah said that he had two suggestions. One is for the Defense Department to include Iran’s requirements in its orders of equipment for American forces. This would tend to keep the prices for Iran down. Alternatively, the Defense Department might be able to persuade American arms manufacturers to give Iran special favorable prices. In either case, favorable prices would serve to offset the cost to Iran of financing it might have to obtain from commercial banks.

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The Secretary indicated that after our nominating conventions, it might be useful for the Executive Branch to discuss this subject with the candidates of both parties. He said that he believed the present leading candidates favor our program of military cooperation with Iran, and the Shah said that he also believes this to be the case.

  1. Source: Department of State, Central Files, POL 7 IRAN. Secret. Drafted by Eliot and approved in S/S on June 25. The meeting took place at the Blair House. The source text is Part II of II; Part I is ibid., S/S Conference Files: Lot 70 D 418, Visit of the Shah of Iran, June 11–12, 1968, Vol. I of II.↩