317. Telegram From the Department of State to the Embassy in Iran1

276775. 1. At Ansary’s request Secretary received him alone November 21. Following points were covered.

A.
Ansary said Shah understands U.S. providing Turkey with M–60 tanks in place of M–47s to go to Pakistan. Shah wanted to know why Iran could not get M–60 replacements for its own older models. Secretary said he did not think M–60s were involved but he would pass request to his colleagues. (FYI. Plan is for U.S. to provide Turkey with rehab M–48s in place of M–47s which would go to Pakistan. End FYI.)
B.
Shah wanted us to know he making every effort eliminate outstanding problems between Iran and Afghanistan.
C.
Ansary made two suggestions about oil which he said Prime Minister would raise during his visit to U.S. First, was that US buy Iranian oil for Vietnam and sequester proceeds which could be used for Iranian arms purchase in this country. Second, was that US should buy Iranian oil for stockpiling. Secretary said he would ask his colleagues consider latter suggestion which he had not heard of before.
D.
Ambassador said Shah was concerned lest U.S. in order maintain a certain balance give undue support to Saudi Arabia. Secretary probed without much success for what was behind this suggestion but got impression Shah feels that undue American support for Saudi Arabia would create problems of prestige in the Middle East for Iran. Net impression Secretary received was that Shah rather hoping that US will pick Iran as its “chosen instrument” in the Middle East.
Rusk
  1. Source: Department of State, Central Files, POL IRAN-U.S. Secret; Priority; Nodis. Drafted by Rockwell on November 22 and approved by Rusk.