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.
Attachment
Memorandum From Secretary of State Rogers to President Nixon
Washington, May 28, 1971
[Page 2]
SUBJECT:
- Determination and Authorization under Section 614(a) of the
Foreign Assistance Act of 1961, as Amended, Permitting the
Furnishing of Defense Services to Iran on a Grant Basis
Discussion:
We propose to furnish Iran an amount not to exceed $2,433,000 out of
funds made aVailable in the FY 1971
military assistance program. These funds will permit us to fulfill
our undertaking to provide Iran assistance on a grant basis
consisting of military training and support of our military mission
there.
This modest assistance program performs two key functions: it
supports the United States Military Assistance Advisory Group
(ARMISH/MAAG) in Iran,
and it permits the training of the Iranian military in the United
States and in Iran. Both of these functions contribute to the
strength of the Iranian Armed Forces and to the ability of Iran to
play a role in the maintenance of stability in the Middle East.
It is important to United States interests to continue to have Iran
as a strong, stable and reliable friend in the turbulent Middle
East. Iran is a firm ally which continues to take a positive and
cooperative attitude towards the achievement of common objectives in
an area of political instability.
ARMISH/MAAG is our principal
vehicle for counselling the Iranian Armed Forces on all aspects of
their modernization and rationalization. Although Iran now has the
capability to purchase its military equipment requirements, [Page 3] the Iranian Armed Forces
are still in need of expert advice and counsel on a multitude of
organizational, maintenance and support functions. ARMISH/MAAG has this mission. It
provides needed expertise in the area of general military
operations, force planning, training and the use of modern weaponry
and techniques.
It is also in our interest to provide training in the United States
and in-country to officers and men of the Iranian Armed Forces.
Recent surveys of the status of the Iranian Armed Forces, including
a GAO report on Military Assistance
Training, have pointed up a pressing need for more pilots and
technical officers as well as supervisory personnel in the enlisted
grades. It is therefore advisable to continue a training program to
ensure that the Iranian Armed Forces have a sufficient number of
technicians to maintain an adequate degree of operational
readiness.
The CONUS training plus the
presence of ARMISH/MAAG
combine to give the United States a position of friendship and
influence vis-a-vis the Iranian Armed Forces which we value highly.
As concerns FY 71 we have already
undertaken to make available $2,433,000 in grant military
assistance. The recent oil settlement in Tehran is expected to
increase significantly Iranian foreign exchange receipts. Iran’s
ability to sustain an increasing share of its defense burden is
manifest. In future fiscal years it is our intent therefore to
reduce substantially MAP grant
assistance to Iran. Withholding the sum under reference, however,
would be considered a failure on our part to fulfill a firm
undertaking and would have adverse effects on Iranian planning.
Legal Aspects
Section 620(m) of the Foreign Assistance Act of 1961, as amended,
states that grant assistance shall not be furnished “to any
economically developed nation capable of sustaining its own defense
burden and economic growth.” Iran is now considered to be subject to
the prohibition of Section 620(m).
Section 614(a) of the Act permits a Presidential waiver of
restrictions on furnishing assistance imposed [Page 4] under the Act, including the
restriction of Section 620(m), when the President determines that
such authorization is important to the security of the United
States.
In light of considerations discussed above, I believe it would be
appropriate for you to determine, under the authority of Section
614(a), that the provision of $2,433,000 in grant military
assistance to Iran is important to the security of the United States
and authorize the provision of this assistance without regard to the
requirements of Section 620(m).
Recommendation:
I recommend that you sign the attached determination and
authorization, pursuant to Section 614(a) of the Foreign Assistance
Act, to permit the grant of $2,433,000 in military assistance to
Iran in fulfillment of the FY 1971
program.
