310. Memorandum From Secretary of State Muskie to President Carter 1

SUBJECT

  • Possible Approach from Bani-Sadr

We have just received a report of a meeting yesterday in Madrid between Khomeini’s nephew, Reza Pasandideh, (the son of Khomeini’s older brother) and Washington attorney Stan Pottinger.2 The meeting was arranged at Pasandideh’s request. According to Pottinger, Pasandideh claimed to be acting as Bani-Sadr’s emissary. He stated that Bani-Sadr was now interested in beginning talks in Europe between his representative and a U.S. representative, to discuss a possible settlement, including release of the hostages.

Pasandideh told Pottinger that his approach had been authorized by Bani-Sadr, and that Khomeini was aware of it. He claims to be a close friend and ally of Bani-Sadr, and our information indicates that this is probably correct. He also says that he has been used as a channel of communication between Bani-Sadr and Khomeini. Pasandideh suggested that this proposal for discussions had arisen out of a consensus among Khomeini, Bani-Sadr, Pasandideh’s father (Khomeini’s brother), and Pasandideh himself that the time has come to end the crisis. Pasandideh said that Bani-Sadr is seeking through these talks to develop a proposal to put before the Parliament. He reportedly believes that a majority of the Parliament will support him on this issue.

Until we have been able to obtain some additional information, we should not exaggerate the importance of this apparent overture. Nonetheless, a direct channel of communication to Bani-Sadr would obviously be very helpful, and I therefore believe we should explore this contact further. With your approval, I plan to give Pottinger (the Washington lawyer) the attached oral message offering to send a representative (probably Hal Saunders) to meet with Pasandideh to discuss the outstanding issues between the U.S. and Iran.3

[Page 845]

Attachment

Oral Message 4

A representative of the United States Government is prepared to meet confidentially with a representative of President Bani-Sadr at an agreed location in order to begin discussions of issues between the United States and Iran, including:

—The release of Americans held hostage in Iran.

—The freeze of Iranian assets in the U.S.

—The interruption of trade.

—A relationship between the U.S. and Iran based on recognition of the Islamic revolution as a new reality in Iran and on the right of Iranians to determine their own future.

—Resolution of other issues between the U.S. and Iran in accordance with principles of international law and the UN Charter.

  1. Source: Carter Library, National Security Affairs, Brzezinski Material, Country File, Box 31, Iran 6/80–7/80. Secret; Nodis. Carter initialed “C” in the upper right corner of the page. Aaron informed Carter: “I agree that this is well worth exploring and recommend that you approve.” (Memorandum from Aaron to Carter, July 3; ibid.)
  2. The original account of this meeting is in a July 3 memorandum from Saunders to Muskie. (Department of State, Records of David D. Newsom, Under Secretary of State for Political Affairs, Subject Files, 1978–1981, Lot 81D154, Iran: Ghotbzadeh, Bani-Sadr, Khomeini (Iranian Government and Its Degrees))
  3. Carter approved the plan with a checkmark and initialed “J” in the right margin.
  4. Secret.