Foreign Relations of the United States, 1955–1957, Near East Region; Iran; Iraq, Volume XII

122. Telegram From the Department of State to the Embassy in Iran¹

Washington, April 16, 1956—7:49 p.m.

1866. For Henderson. Re Tehran’s 1597² you authorized state following at appropriate time:

(a) We willing contribute one-sixth cost of Secretariat’s first year budget if such cost reasonable. US share not to exceed $50,000. In this connection see Paragraph (e) below. When possible we wish maintain principle equal sharing of costs. FYI: Probable theory on which funds would be made available is that this is ICA aid grant to organization of which we not member, rather than contribution from State appropriation for our share participation international organizations in which we are members. Latter approach would involve numerous limitations contained in State appropriation act of which you aware, e.g., restriction of contributions to one-third organization’s budget, which, while not immediate problem, could conceivably be ultimately. End FYI.

(b) US prepared participate in work Economic Committee as member. Should be understood this does not constitute agreement to “channel” aid through Economic Committee since we wish continue bilateral aid basis. However, you authorized state US will give sympathetic consideration methods assisting in implementing economic development activities involving more than one country. FYI: Our understanding is that “membership” involves participation in economic discussions, and does not raise any implications of obligation to contribute to special Economic Committee administrative budgets. Assume Committee has no independent budget, but makes use of Secretariat facilities. If assumptions invalid, clarify soonest. End FYI.

(c) (1) Admiral Cassady already informed by Defense that US prepared establish separate permanent observer group headed by high level officer at Baghdad to work with Military Committee. You will wish concert with Admiral Cassady in announcing this point.

(2) Department prepared assign officer to Embassy Baghdad as full-time observer Countersubversive (and Liaison) Committee.

(d) US willing consider contributing personnel to Secretariat. Concur you should make it clear our willingness participate does not imply commitment to help fund substantive Pact activities or to shift aid funds from bilateral to regional programs. FYI: Re US personnel for Secretariat we propose using authority section 529 (c) (1) Mutual Security Act 1954, under which we would pay entire cost salary and emoluments directly to personnel involved. Your discretion this can be in addition US contribution directly to Secretariat budget.

(e) In order to obligate funds for accounting purposes, suggest you make statement that US will “grant not to exceed $50,000 for this year’s Secretariat budget on condition US grant will not exceed one-sixth cost Secretariat budget” specifying in your statement whether amount includes or excludes cost US personnel made available pursuant paragraph (d) above.

Dulles

1. Source: Department of State, Central Files, 780.5/4–1556. Secret; Niact. Drafted by L. Wade Lathram and Dixon and approved by Rountree who signed for Dulles.
2. Document 118.