888.00/10–1554: Telegram
No. 499
The Ambassador in Iran (Henderson) to the Department of State
niact
874. Joint Embassy and USOM/I message.
- 1.
- Following Warne’s return we
have considered tactics obtaining from Iranian Government commitments
meeting requirements Deptel 729,
October 13. We believe best procedure would be seek Prime Minister’s
agreement address letter to me volunteering statement policy Iranian
Government. Warne and I plan
Saturday meetings with Iranian Government officials with objective if
possible obtaining their agreement to procedure before my departure for
Washington Sunday morning. Realize difficulty time limitation but would
greatly appreciate it if Department and FOA could by niact reply
today give us reaction to following draft letter which we hope Prime
Minister might be willing sign and which we believe would accomplish
purposes:
Begin Text.
Dear Mr. Ambassador: I refer our recent conversations concerning additional technical, economic and financial assistance which US is now prepared extend to Government of Iran. May I express sincere appreciation my government for this further evidence US interest in helping Iran during this critical period until oil revenues begin to flow in substantial volume and Iran is in position accept full financial responsibility for its development and other requirements.
Our discussions on proposed aid program naturally have encompassed considerations regarding intention of Iranian Government not only with regard to utilization of American aid funds which will be made available but also regarding utilization of Iranian resources in manner which would permit most effective results from [Page 1060] all funds including American aid. As you know Iranian Government has been giving careful thought to programs and policies which it will follow in economic field upon implementation of oil agreement which has been concluded with international consortium. Realizing how important it is to mobilize and make most effective use of all its financial resources during the critical period lying ahead Iranian Government intends pursue following policies in connection with execution of its development program.
- (a)
- Iranian Government intends pursue in appropriate ways policy already instituted to increase its normal revenues and to budget their use in connection with its programs.
- (b)
- In interest of orderly formulation and execution of development program Government of Iran intends through an appropriate coordinating committee of its responsible officials to maintain close supervision over receipts and expenditures of public revenues and the fixing of priorities for obligations and expenditures on proposed public works and other projects.
- (c)
Along same lines, in order conserve and make most effective use of all foreign exchange resources of Iran, government intends manage these resources to (1) support and facilitate orderly economic development, (2) maintain proper balance between consumer and capital good imports, (3) foster development of diversified export trade. As you know, Iran is member of International Monetary Fund and will of course consult Fund in accordance with its procedures in advance of effecting any changes that might be warranted in the exchange rate.
End Text.
- 2.
- You will note names of members control committee not indicated in draft letter, as we believe Prime Minister probably would not wish be so specific in document this kind. Our suggestion is that precise make-up of committee be covered orally in conversation with Prime Minister and others.
- 3.
- Reftel did not suggest inclusion reference to consultation of Iranian Government with US officials before commitments US aid funds, nor do we believe this aspect should be included in letter since it undoubtedly will be made part of later specific agreement.