S/P–NSC files, lot 61 D 167, “Iran (NSC 175 and 5402)”
No. 495
Memorandum by the Deputy Assistant Secretary
of State for Near Eastern, South Asian, and African Affairs (Jernegan) to the Director
to the Policy Planning Staff (Bowie)1
Subject:
- Proposed Program of Military Aid to Iran
I refer to our telephone conversation today about a possible statement on this subject at the NSC Planning Board meeting on Monday.2 The essential facts are as follows.
General McClure, Chief of the American Military Mission in Iran, has recommended a substantial expansion in the scale of our military assistance to Iran. He proposes that over a three-year period we spend about $360 million, as contrasted with past annual increments ranging between $6 million and $30 million. This expanded program has the general endorsement of our Ambassador.
Something over $100 million of the total would be for defense support: construction of strategic roads, enlargement of air fields, construction of shoe factories, clothing factories, canning plants, etc. Another substantial portion would go for the construction of housing and other facilities needed for the relocation of major Iranian military units in the areas which present plans call upon them to defend in time of war. A third substantial item, in the neighborhood of $80 or $90 million, is to build up a three month’s reserve of ammunition. Only between a third and a quarter of the total funds would go for new military end items other than ammunition.
This proposal is designed to give Iran a real capability to assist in the defense of the Middle East and also to encourage her to join in Middle East defense arrangements. The Shah has made the development of his forces a condition to any Iranian participation in a regional arrangement.
General McClure’s recommendations are under study in the Pentagon and we are awaiting the views of the Joint Chiefs before trying to formulate a definite State Department position. However, NEA regards the proposals as good, from the political point of view. While it would probably be desirable to make an early start if the expanded program is approved, we believe it would not be absolutely necessary to allocate additional funds from this year’s [Page 1053] appropriations. The beginning could be made in next fiscal year based on a new presentation to the next Congress.
If the occasion arises for you to comment at the Planning Board, it is suggested that you say the Department considers an adequate military program for Iran as essential to achieve our political objectives in that country. You could add that we do not as yet feel able to express a definite opinion regarding the specific program proposed by General McClure. We consider however that the political factors should be taken very much into consideration in arriving at a decision on this whole question.