300. Memorandum From Secretary of State Herter to President Eisenhower0
SUBJECT
- Suggested Reply to the Shah of Iran1
On March 30, 1960, the Shah of Iran wrote you a letter2 giving his further views on the military assistance needs of his country. As the Shah appeared relatively relaxed about his security situation, it was not felt necessary to reply to his letter immediately. Since his letter was received, Congressional appropriations and a review of our military assistance plans indicate that it will not be possible for us to provide the Shah with military aid in an amount even approaching his requests. It would also be impossible for Iran to maintain forces of the size and complexity the Shah desires without severe dislocation of the Iranian economy and consequent prejudice to internal stability. However, it is expected that United States military assistance to Iran in the next few years will make possible progressive improvement in the effectiveness of Iranian forces within the limits of United States and Iranian resources.
In recent weeks the Shah has commendably taken preliminary measures to avert a serious crisis which might result from current foreign exchange losses and inflationary pressures. Although these measures have only begun to be implemented, the stabilization program is wholly desirable and the Shah deserves to be congratulated on the start he has made. In the enclosed suggested reply to the Shah’s letter,3 we imply a willingness on our part to give expeditious and increased [Page 701] consideration to Iran’s economic needs within the framework of the stabilization program.
The Shah has recently shown signs of a growing sense of insecurity. He is re-examining his own strong posture toward the Soviet Union and comparing it with that of his non-communist neighbors. The suggested reply only repeats previous promises of support against Soviet threats, but even the reiteration of these in a personal letter from you at this time would serve to reassure the Shah that we are his steadfast friend and are not abandoning Iran. The reply also seeks to allay the Shah’s fears of threats from Afghanistan, Iraq or the United Arab Republic.
I recommend that you send the enclosed suggested reply to the Shah of Iran, which has been cleared with the Department of Defense.
- Source: Department of State, Central Files, 788.5–MSP/9–1960. Secret; Presidential Handling. Drafted by Bowling, cleared by Lewis Jones and cleared in draft with Baxter, John M. McSweeney, Director of the Office of Eastern European Affairs, and Irwin of Defense.↩
- In telegram 551 to Iran, August 29, the Department transmitted an outline of the draft letter from the President to the Shah and noted that because of lack of funds and a general reconsideration of the U.S. Military Assistance Program, it could not offer to provide the military aid program the Shah desired. In telegram 526 from Tehran, August 30, the Embassy observed that the Shah would find the draft letter “extremely disappointing” especially in his “present mood of disillusion with support being received from his friends.” The Embassy suggested that if the letter could not include additional military assistance for Iran, it was better to leave the explanation in general terms, since to do otherwise would only discourage and depress the Shah further. (Ibid., 611.88/8–2760 and 611.88/8–3060, respectively)↩
- See footnote 1, Document 289.↩
- Not printed. The text of the letter as approved by Eisenhower is in telegram 663 to Tehran, September 20. (Department of State, Central Files, 788.5–MSP/9–2060)↩
- Printed from a copy that bears this stamped signature.↩