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101. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to the Chairman of the NSC Under Secretaries Committee (Maw)1

SUBJECT

  • Study on Co-Production in Iran

It is requested that, prior to submission to the President, the study and recommendations of the Under Secretaries Committee on co-production in Iran be reviewed and revised to:

—analyze more clearly the relation of potential co-production projects to our overall military supply relationship with Iran, and assess the political benefits which we might gain as a result of co-production;

—estimate in quantitative terms the potential growth of co-production projects in Iran; and

—devise a specific set of guidelines for assessing new co-production projects in Iran, including specific recommendations on how to handle the variety of Iranian and U.S. economic and political problems which co-production projects may entail.

The guidelines should include detailed recommendations for:

—permission for Iran to sell to third countries,

—the USG relationship to management of Iranian arms industries, and

—the procedure for approval of specific projects.

Such detailed and unambiguous analysis is necessary if co-production is to be a successful and innovative adjunct of our military supply relationship with Iran and not, instead, create dangers of:

—serious Iranian disappointment as a result of misunderstandings about the extent of our commitment and the problems of accomplishment, and

—problems of U.S. involvement in Iran’s arms industries.

This review should be submitted by February 28, 1975.

Henry A. Kissinger
  1. Source: Ford Library, NSC Institutional Files, Box 11, Meetings, Log No. 7500060, Co-Production in Iran (2). Secret.