68. Telegram From the Embassy in Iran to the Department of State1
854. In recent conversations with Eckhardt and me Shah has asked for annual review of military equipment program and acquisitions as provided for in Memorandum of Understanding of July 4, 1964. Shah referred to anticipated increases in oil revenues and indicated his desire to consider purchase of additional military equipment, including high performance fighter aircraft, armored reconnaissance vehicles, increase in war reserve ammunition from 30 to 60 days, and second Hawk battalion.
He accepted my suggestion that review should begin with comprehensive assessment of GOI’s projected revenues and outlays, especially [Page 129] of foreign exchange, over next several years; review to be carried out by economic officials in consultation with Embassy-USAID economic officers. As first step in consultation we have prepared lengthy questionnaire of matters to be addressed and I will pass it to Prime Minister this week.
Details follow by airgram.
- Source: Department of State, Central Files, DEF 19–3 U.S.-IRAN. Secret. Repeated to DOD and CINCSTRIKE/CINCMEAFSA.↩