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

918. Shah’s Visit. Official, social and public aspects Washington portion Shah’s visit highly successful. Welcoming delegation headed by Secretary, Duke and Talbot; farewell delegation headed by Duke and Talbot. Shah made excellent impression at Mellon dinner and also at private dinner Washington Institute of Foreign Affairs, where he answered off-the-record questions about world affairs and Iranian domestic problems in frank and informed manner before very distinguished group. Publicity relatively small in volume, prevailingly favorable to Shah, concentrated on cultural-educational aspects of visit with hardly any speculation substantive content official meetings.

Students, numbering 25–30, demonstrated quietly at Dulles, White House, American University, Sulgrave Club, and Mass Ave near Embassy. Missed departure National Airport because of last-minute change in locale from Andrews. In each case picketing was kept at considerable distance, and Shah’s party was routed in such ways that it doubtful he saw pickets. Students held press conference at National Press Club, June 5, covered in Post inside page, low-key story.

There were several late additions to schedule, as follows: meeting with State, AID and DOD reps June 6, followed up by more detailed discussions military modernization with DOD reps June 8 (Deptel 916);2 private meeting June 8 with oil executives Page and Parkhurst, at Shah’s request (memcon follows);3 “tea” June 8 with officials Exim bank, IMF, [Page 83] IBRD, IFC; wreath laying Kennedy grave Arlington, June 8; and brief visit Washington Cathedral as guest Dean Sayre, June 8. We have also heard that Shah spent considerable time June 6 and 7 at Embassy holding levees for various categories of Iranian residents, including some students who sought, and in some cases received, passport renewals.

Aside from military modernization discussions (Deptel 916), most significant addition to schedule was Monday meeting with bankers, which arranged hastily on Sunday, presumably at initiative of Shah. Attended by: Linder, Sauer, and Welk of EXIM; Knapp, Reed, and Khosropour of IBRD; Rosen of IFC; Southard and Gunter of IMF; Foroughi and Amuzegar. Shah addressed this group on Iranian economic problems, reform program, political outlook. EXIM group was well impressed with his informed, balanced approach, particularly his grasp of economic affairs, and believes international org reps were similarly impressed. Shah acknowledged Iran’s greatly improved economic prospects but stressed need for continued foreign lending in interim in order to support adequate pace economic development. He referred in appreciative terms to new IBRD road loan and expressed hope for combined AID-EXIM lending for electric power network. Appears this session initiated on basis advice and briefing from Samii and provided most beneficial follow-up recent Samii mission.

Shah has accepted invitation from Northrop to visit USAF base Los Angeles area June 10 for operational demonstration F–5B.

Rusk
  1. Source: Department of State, Central Files, POL 7 IRAN. Confidential. Drafted by Tiger; cleared by Billings and Deputy Chief of Protocol William J. Tonesk, and in substance by Sidney T. Telford of the Office of Security, Welk of the Export-Import Bank, and Colonel Taylor; and approved by Bracken.
  2. Document 40.
  3. See Document 38.