788.11/12–954

No. 504
Memorandum by the Acting Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Jernegan) to the Secretary of State1

secret

Subject:

  • Visit of His Imperial Majesty Mohammad Reza Pahlavi Shahinshah of Iran and Empress Soraya

The Shah will call upon the President on Monday, December 13 at 12:15 p.m. for a talk. The President expects that you will attend together with Under Secretary Hoover and Acting Assistant Secretary Jernegan. Ambassador Entezam will accompany the Shah. It is also expected that Mrs. Dulles together with Mrs. Hoover will assist Mrs. Eisenhower in showing the Empress around the White House during this period. You and Mrs. Dulles, along with the others, are also invited to lunch.

The Shah’s main interest is to find out what role we expect Iran to play in Middle East defense and to what extent we are prepared [Page 1067] to assist Iran to develop defensive delaying capabilities. Although the Shah has been told he cannot expect any final decisions during his visit, our response to his questions should take in the following considerations: we wish to improve the ability of Iran’s armed forces to provide resistance to external aggression and eventually to make a realistic contribution to the defense of the area. We wish also to build up the self-confidence and morale of the Shah and his government so that they will continue to stand up to Soviet pressures and to have a sense of direction. Former opportunities to build up Iran’s armed forces were not fully exploited due to a less favorable political climate. We believe that if the present opportunity is seized we can capitalize on the existing favorable situation in Iran and make a significant advance toward bringing Iran into closer cooperation with its neighbors in the free world and changing it from a liability to a positive asset in the Middle Eastern area.

At the outset of their talk the Shah will hand the President a memorandum containing his views. We have an advance copy, a summary of which is attached as Tab A. It is recommended that because of his personal knowledge of the Iranian situation, you ask Mr. Hoover to brief the President regarding it.

Attached as Tab B for your approval is a memorandum for the President, transmitting a paper which suggests the line he may wish to take in response to questions which the Shah is likely to ask. This paper has been approved by the Department of Defense and CIA.

Attached as Tab C2 is a summary status report on military aid to Iran. Although the Secretary of Defense has not yet replied to your letter recommending a substantial increase in aid,3 a decision has been taken that we help develop Iran’s defensive delaying capabilities as fast as Iran demonstrates its ability to effectively train its soldiers to use properly our military aid.

Attached as Tab D is a background paper on the internal political situation in Iran. You may wish to comment to the Shah on the resolute attitude and determination shown by his government in combating communism in Iran.

Attached as Tab E is a background paper summarizing the current economic situation and describing US economic aid to date. It is not expected that the Shah will want to discuss the question of economic aid in any detail. However, it is recommended that you compliment the Shah on his government’s stated intention to press forward with economic and social reforms.

[Page 1068]

If the Shah should express the hope that Ambassador Henderson would not be withdrawn at this time you may wish to take the line that the decision regarding his transfer4 was based on long-term considerations and important responsibilities for which he is singularly qualified.

[Tab A]

Ambassador Henderson’s Summary Of The Memorandum To Be Handed To The President By The Shah At The Opening Of Their Talk At The White House On December 13

During the last 15 months Iran has demonstrated a determination to remain an independent nation and to utilize its resources to the advantage of itself and other free nations. The oil agreement marks a psychological turning point for Iran as well as a beginning of a new and promising economic period. In abandoning a negative and sterile policy the Iran Government and Parliament have made a conscious decision to turn their backs on this form of isolationism and to join hands with leading nations of the free world. Iran is grateful for US financial support during its period of travail; also for encouragement and counsel from the President and his advisers that have helped so much to bring Iran to the present promising situation.

It is hoped that Iran eventually will receive the oil revenues needed for a development program designed to strengthen its economy and improve living conditions. Plans for the program will be carried out in a way that natural and human resources will be utilized to the maximum, and I intend to do all in my power to make sure funds will be used wisely in executing the program according to carefully worked out priorities. It will be several years, however, before Iran is in a position to meet urgent development needs without financial and technical assistance from its friends abroad. We are particularly appreciative of the support which the US is continuing to give in connection with the economic and technical advancement of our country.

The problem weighing most heavily upon my mind at present, however, is that of the security of Iran. We have over 1,600 miles of border with Russia. Although relations now with our northern neighbor are at least formally correct, we have no reason to believe that international communism has abandoned its long-range objectives of converting Iran into a Communist corridor to the Persian [Page 1069] Gulf, the Middle East and South Asia. We are compelled to keep constantly on guard to prevent or frustrate Communist infiltration. Just recently we discovered that Communists had taken advantage of a situation which existed in Iran between April 1951 and August 1953 to penetrate our Armed Forces. The so-called “neutrality” policy of the Iranian Government then in power was primarily responsible for the decline in morale among certain elements in the Armed Forces. This policy gave these forces the impression that if Iran should be subjected to armed attack from the north they would not be expected to defend the country and that therefore there would be no reason to be prepared to do so. Fortunately during this period an overwhelming majority of officers and men remained loyal and patriotic and we have been able to identify and weed out those who failed to stand firm. Nevertheless a degree of success which the Communists were able to achieve emphasizes the importance that the armed forces understand that their basic mission is defense of their country.

There are several ways by which international Communists may try to take over Iran. I shall mention three: (1) by armed invasion with the idea of stamping out all resistance before other nations of the free world have the opportunity to intervene; (2) by simultaneous employment of tactics of diplomatic pressure, threatening gestures, and internal and organized infiltration. Pressures and threats would be used to keep Iran isolated from other free countries whose support Iran needs, and infiltration would be resorted to for the purpose of reducing the country to a helpless state of economic and political chaos; (3) by convincing the Iranian people that Iran, in its geographical position under the shadow of a great Communist bloc and far distant from the centers of strength in the free world, has no hope of surviving as a free nation and therefore it would be better to surrender to international communism without fight rather than to give in after a cruel, hopeless struggle.

I am convinced that one of the essentials for preventing international communism from realizing its ambitions with regard to Iran is for us with the help of great free nations, particularly the US, to strengthen our Armed Forces to the extent that would render them capable of putting up an honorable defense if Iran is attacked. If our forces could possess such a capability, morale would be much higher and they would be much less vulnerable to penetration. The Iranian Government and the Iranian people would be sure to stand up more firmly in the face of pressures, threats and attempts at Communist infiltration if they had the feeling Iran could resist if attacked, and that the free world were interested in Iran being able to put up such resistance and were helping to that end.

[Page 1070]

Furthermore if Iran should have an army with real defensive capabilities, international Communism in my opinion would be more cautious in launching an armed attack against it and would not be so hopeful of achieving its ends by indirect means.

We are grateful for US military assistance which during recent years has rendered it possible for Iran to maintain armed forces capable of preserving law and order internally. Unfortunately, however, its forces now have practically no defensive capabilities. Its organization, number and distribution throughout country do not correspond to the present needs of Iranian defense; its officers and men are not trained, conditioned, equipped and armed to meet the requirements of modern warfare. I fear that no matter how much money and effort are put into strengthening Iran economically, our common objective of maintaining Iran as an economically and politically stable independent country will not be achieved unless the situation re its armed forces is remedied.

Unfortunately at present our budget, even with present generous assistance from US is so limited we do not see how we can spare the additional funds to the military for training purposes. We are not able to give the armed forces food and clothing of the kind which men undergoing rigorous training should have; no goods with which to settle some contingents in more strategic areas or to transfer military stores to less vulnerable places. We are hoping that the US will find it possible to give us help in this regard, to give us additional aid in training, and also furnish us, as fast as we are prepared to make effective use of them, all weapons required by a modern army—weapons which in our case would be required not only for our own defense but also for that of the region. I stress the importance of modern weapons since it would not be good for the morale of our soldiers for them to feel that we expect them to stand up to heavy tanks with our present inadequate arms or to be subjected to aerial bombardment without any aircraft, guns and fighter protection. In this connection, it should be borne in mind that in view of Iran’s geographical position it might take from three to six months to get military supplies to us in case we are attacked. Need for advance planning in the matter of military depots therefore seems urgent.

We realize that Iran, even with strong army would not be able by itself over a prolonged period to halt international Communist aggression in force. It seems clear that a regional security arrangement of some kind which includes Iran might well serve as a deterrent to such aggression and would be helpful in combatting aggression if it should be undertaken. It does not seem to me fitting, however, that Iran should be a party to such an arrangement until it is in a position—or until it has at least reason to believe that it will [Page 1071] soon be in a position—to contribute its share to the common defense of the area. No self-respecting nation can expect its neighbors to fight for it unless it is willing and capable of fighting for itself.

From the viewpoint of the security of the area as a whole, it seems to me militarily, strategically and logically sound that there should be a carefully calculated balance of military strength among Turkey, Iran and Pakistan. Such a balance is now non-existent. Powerful forces are concentrated in Turkey while Iran is almost defenseless. An international Communist attack would certainly not be through Turkey when it could easily outflank Turkey by seizing Iran. It could then turn the Persian Gulf into a Communist sea, split the forces of Turkey and Pakistan, occupy our oil fields, and be in a position to seize the major oil fields of the Middle East. It is difficult therefore to escape the conclusion that Iran at present is the key to the defense of the Middle East.

We earnestly hope that the US will understand the difficult problem Iran is facing re its future and will make such political and military decisions as are necessary if the Iran people are to go about their tasks of strengthening the economic and social basis of their country with feelings of confidence, and if Iran is to play its proper role in promoting the security of the Middle East and of the free world.5

[Tab B]

Visit of the Shah of Iran

secret

The Shah visited the United States in 1949. He believes that he was rebuffed and that he did not succeed in making the United States realize the strategic importance of Iran and the need for our support on the Greek-Turkish pattern. He is visiting the United States again, with his Empress, to obtain medical advice, rest and relaxation, and to talk to American officials concerning military support and area defense organization. He has been informed by Ambassador Henderson that no final decisions will be reached during his visit.

You will find him sympathetic to our objectives by personal inclination as well as statesmanlike realization of his country’s stake in [Page 1072] the free world’s struggle against international communism. He appreciates, but is very sensitive about, the extent of our assistance to him in 1953 when he took a courageous stand against Dr. Mosadeq.

The oil settlement has led the Iranian public to expect early, tangible benefits. Without economic and social improvement, political stability in Iran and the oil settlement itself will be seriously threatened.

United States economic aid, consisting of $5 million per month budgetary assistance from August 1953 through the end of 1954, a technical assistance program and a loan through the Export-Import Bank of $83 million, has been designed to support political stability and early economic development.

United States military aid is designed to improve the ability of the Iranian armed forces to maintain internal security and provide some resistance to external aggression. Intensive training is a major element in our proposed program for next year and United States training teams down to brigade level are being added to the advisory military missions we have had in Iran since the war.

The Shah’s primary interest will be in the question of the role which we expect Iran to play in Middle East defense. The “northern tier” concept of increasing strength in the Middle East requires Iran’s adherence to regional security arrangements. The Shah wants to join, but wants to be assured that we will help develop his armed forces to a point where they can make a realistic contribution to such defense before his country formally commits itself.

recommendation

It is suggested that you tell the Shah that we would welcome Iran’s adherence to a regional defense arrangement of Turkey, Pakistan and Iraq and are prepared to help develop in the Iranian armed forces defensive delaying capabilities which would make a useful contribution to defense.… We are convinced, however, that until intensive training has improved his army’s ability to make effective use of modern weapons, it will not be possible for us to evaluate the military role which Iranian forces should play.

Following the settlement of the Suez Canal base problem between Britain and Egypt, we are reassessing the Middle East defense picture and expect to have firm views on what is required by late spring. However, high United States military and civilian officers are interested in having the Shah’s views on this and related subjects.

We do not want to develop a military establishment in Iran which would be an undue burden on the national economy. While we are prepared to ask Congress for some defense support funds for [Page 1073] Iran in FY 1956, we need assurance that, as oil revenues increase, the Shah will see to it there is enough set aside to make a major contribution toward supporting the armed forces and thereby reduce reliance on foreign aid.

It is recommended that you express condolences for the death of Prince Ali Reza, the Shah’s brother, in a recent airplane crash.6

It is recommended you mention the messages which you exchanged with the Shah during the recent crisis period in the sense of a partnership which is still active. A reference along the following lines is suggested:

“I am very pleased at the close way in which we have been able to work together on some very important undertakings in spite of the fact that many thousands of miles have separated us. I want you to know of the great personal interest I have taken in all of this and the appreciation I feel for the courageous and statesmanlike actions you have taken.”7

  1. Drafted by Gray of GTI.
  2. Tabs C, D, and E are not printed.
  3. Reference is to Secretary Dulles’ letter to Secretary Wilson, supra.
  4. Ambassador Henderson was appointed Deputy Under Secretary of State for Administration on Jan. 26, 1955. He left Tehran on Dec. 30, 1954.
  5. On Dec. 14 President Eisenhower addressed a memorandum to Secretary Dulles enclosing the text of the Shah’s memorandum, which the Shah had handed to the President at their meeting the previous day. Ambassador Henderson’s summary of the Shah’s document closely paraphrased the Shah’s text. The texts of both the President’s and the Shah’s memoranda are in file 788.11/12–1454.
  6. Prince Ali Reza died on Nov. 2.
  7. On Dec. 10 Secretary Dulles sent this briefing paper to President Eisenhower under cover of a separate memorandum that suggested to the President that he use the information in this paper as the basis of his replies to questions that the Shah might ask. (788.11/12–1054)