Foreign Relations of the United States, 1961–1963, Volume XVII, Near East, 1961–1962

133. Informal Summary Record of the Iran Task Force Meeting⁰

Washington, October 26, 1961.

A meeting of the Iran Task Force was held at 5:00 p.m., October 26, 1961, in the office of Assistant Secretary Talbot. In Mr. Talbot’s absence from Washington, Deputy Assistant Secretary Meyer acted as chairman. Present were:

• Mr. Meyer, NEA
• Mr. Kerr, E
• Mr. Costanza, Treasury
• Mr. Hansen, BOB
• Mr. Komer, White House
• [1 line of source text not declassified]
• Mr. Gatewood, INR
• Mr. Miner, GTI
• Mr. Marcy, GTI
• Mr. Bowling, GTI
• Mr. Miklos, GTI

Mr. Meyer distributed copies of a telegram worked out that day between NEA and AID staffs which authorized Ambassador Holmes to inform the GOI of FY 1962 U.S. supporting assistance and development lending. He explained that changes in this telegram would require valuable time, and that he hoped the telegram could be sent with a minimum of changes. Nevertheless, he wanted to obtain the comments and assistance of the Task Force before sending the message.¹

Mr. Meyer also summarized the political situation presented in Embassy Despatch 186 and the Department’s action thereon,² as well as the Ambassador’s most recent telegram in which he described the assurances which he intended to obtain at the time he informed the GOI of U.S. economic assistance levels.³

Mr. Komer stated that he felt the Task Force favors aid for Iran, and that it concurs in the necessity of rallying to the support of Amini politically and economically. However, it might be better for the Ambassador to rely primarily on economic assistance in influencing the GOI, since the prospects for military assistance along the lines recommended by the Ambassador appear unfavorable. Mr. Komer also felt that in view of recent political developments in Iran and in view of the Ambassador’s message suggesting that written assurances be obtained at the time FY 1962 aid is announced, the Ambassador might now have modified views as to the nature of the Task Force report to Mr. Bundy, and that the Ambassador should be given an opportunity to present such views.

Mr. Meyer stated that NEA would convey these points to Ambassador Holmes in separate telegrams or other communications.

Mr. Hansen asked if the $5 million mentioned in the original Task Force report is still being held in reserve, and Mr. Miklos replied that the $5 million is a part of the present aid tranche.

Mr. Hansen also predicted that it would be extremely difficult if not impossible for DLF to find suitable areas in the Second Plan for the extension of project loans, and suggested that perhaps some other and more practical basis for development lending in Iran could be found.

Mr. Miklos agreed, but said that a general program loan was most difficult, and that AID wants to try once more to find acceptable projects.

Mr. Hansen remarked that this telegram should be cleared through the 15/50 procedure. Mr. Miklos said that AID did not believe it required such procedure, but that he would mention it once again to AID officials.

Mr. Hansen suggested that the telegram be amended to provide that as a condition precedent to the extension of the contemplated assist-ance, the GOI be required to work out a revised stabilization program with the IMF within two months.

After some discussion, Mr. Meyer promised to make reference to the stabilization program in an amendment to the text of the telegram conveying information as to our FY 1962 assistance.

Mr. Hansen asked whether our supporting assistance was tied to the Iranian military budget. Mr. Miklos replied that it was in response to the Prime Minister’s request, which was non-military.

0. Source: Department of State, NEA/GTI Files: Lot 65 D 398, 1961 Task Force. Secret. Drafted by Bowling on October 31.
1. Telegram 286 to Tehran, October 27, authorized the Embassy to inform the Iranian Government that the United States would provide an additional $15 million Supporting Assistance cash grant and that a further $20 million in development lending was available from FY 1962 funds. (Ibid., Central Files, 611.88/10–2461) See Supplement, the compilation on Iran.
2. See Document 129.
3. In telegram 332 from Tehran, October 24, Holmes acknowledged receipt of telegram 277 (see Document 129) and urged that as soon as possible he be authorized to inform the Iranian Government of proposed levels for FY 1962 economic assistance. Holmes also indicated his intention to inform the Prime Minister at the appropriate time that the United States wished to obtain written assurances of his intention to take the requisite steps to balance next year’s budget and to set the stage for the successful launching of the Third Plan. (Department of State, Central Files, 611.88/10–2461)