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

382. Memorandum on the Substance of Discussion at the Department of State-Joint Chiefs of Staff Meeting⁰

Washington, December 6, 1963, 3:30 p.m.

[Here follows a list of participants.]

Iran

Ambassador Holmes opened his presentation following an exchange of pleasantries between Mr. Johnson and General Wheeler. The Ambassador said that things are relatively quiet in Iran in terms of law and order; there are no scare cables; and, while progress is not going as planned it is still good. The Shah’s reform program is changing the character of the entire society. He set out to destroy the old landlords and he has done so. He went directly to the peasants to accomplish this. The Shah has not yet consolidated his power but the Majlis is truly representative and is serving as the base for consolidation of power. The economy has improved and confidence is returning.

The opposition is disorganized and is no longer a threat. A lot of the credit for progress is due to internal security programs. The excellent work done in this area by ARMISH-MAAG is paying off handsomely. Ambassador Holmes noted that he was pleased with the five-year military aid program. It is a good program which is going well and it also helps to provide some leverage for control over the Shah’s MAP demands. The Iranian Armed Forces are going well and General Eckhardt is doing an excellent job. He has very fine relations with the Shah. The Shah is preoccupied with defense. He wants more money and materiel. He is worried about the Persian Gulf but is not overly concerned with the USSR. Ambassador Holmes said that the Shah refuses to believe that there is no immediate threat from the Persian Gulf area and that he sees Egypt as an emerging threat. This vision worries the Shah badly. The Shah is a worrier by nature and he is given to going into black moods. Part of this worry is real and part is designed to attempt to force us into giving him destroyers, radar stations and torpedo boats.

The Shah requires assurances and the presence of carriers in the Indian Ocean will be pleasing to him. He should be told about the establishment of this force before any public announcement is made. This force will help to ease his worries about the Persian Gulf.

General Wheeler asked about the Shah’s views on CENTO and Ambassador Holmes replied that the Shah had always used CENTO and cooperated with that organization.

General McKee then inquired about the reaction to General Adam’s visit to Iran. Ambassador Holmes responded that the reaction was good and that the Shah had offered to permit pre-positioning in Iran of supplies and equipment for three U.S. divisions. General Adams told the Shah that he appreciated the offer; however, this offer would have to be given intensive study. At this point General Wheeler interjected that he would like to have new equipment for three divisions in the U.S. General Wheeler and Ambassador Holmes then had a brief exchange concerning the events surrounding the visit of the President of the USSR to Iran.

[Here follows discussion of an unrelated matter.]

0. Source: Department of State, State-JCS Meetings: Lot 70 D 199. Secret. No drafting information appears on the source text, which bears a typed note that it is a Department of State draft not cleared with the Department of Defense. The meeting was held at the Pentagon.