48. Telegram From the Department of State to the Embassy in Iran1
8. For the Ambassador. Joint State/AID/Defense message. Deptel 62 and DEF 976339.3 You hereby authorized negotiate with Shah and/or other appropriate Iranian officials additional program of Mutual Defense Cooperation for period FY 1965–69 as set forth Memo Understanding and annexes forwarded reftels. In course outlining to Shah our willingness assist in Military Modernization Program you should emphasize our deep interest in Iran’s economic development program and its relationship to fundamental security of his country as expressed by the late President Kennedy and President Johnson. Since we would not wish economic effort to be jeopardized, we strongly feel foreign exchange and budgetary effects of military modernization program must be kept in proper bounds. In this respect we will wish periodically examine jointly with GOI overall economic effects military expenditures as indicated Para III 3 C and Para V Memo Understanding.
FYI. In regard Para III 3 C we have not as yet reached firm conclusions re programming schedule or magnitudes segments other than first $57 million. While we hope last programming segment will not be later than FY 1968, this para meant to cover possibility of stretching out program over longer period if military purchase program tends conflict unduly with economic development program or Iranian balance payments. [End] FYI
- Source: Department of State, Central Files, DEF 19 US–IRAN. Confidential; Priority. Drafted by Walsh; cleared by Solbert (DOD), Macomber, Arrill (AID), G/PM Director for Operations Howard Meyers, Tiger, and Saunders; and approved by Talbot.↩
- Document 47.↩
- Not found.↩