133. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon1 2
- Determination to Allow Grant Military Assistance to Iran
Last fall when the Cooper-Church Amendment was stalling the Foreign Military Sales Act, the annual $100 million sales program to Iran was shifted to the Export-Import Bank so that continuation of credits for Iran would be assured if the legislation failed. To accomplish that shift, Iran was reclassified under existing legislation as an economically developed country. That change then brought the small continuing grant military assistance program ($2.4 million primarily for military training) under a prohibition in the Foreign Assistance Act against grant military assistance to developed countries. In time, it will be logical to remove Iran from the grant list. However, to do so now would be to damage this relationship for no good reason.
Therefore, for FY 1971 it is necessary for you to wave the restriction in the Foreign Assistance Act. OMB Director George Shultz and Secretary Rogers recommend in the attached memoranda that you make this waiver.
RECOMMENDATION: That you sign the waiver at the signature tab.
APPROVED FOR PRESIDENTIAL SIGNATURE
- Source: National Archives, Nixon Presidential Materials, NSC Files, Box 1268, Saunders Files, Middle East Negotiations, Iran Military, 1/1/71–12/31/71. Secret. Sent for action. The memorandum from OMB Director George Shultz, June 9, is not published. The President signed the attached waiver, Presidential Determination No. 71–18, on June 24, 1971↩
- Kissinger recommended that the President sign a waiver to allow Iran to continue to receive grant military assistance despite its reclassification the previous year as a “developed” country.↩