248. Telegram From the Embassy in Iran to the Department of State1
Tehran, November 22, 1967,
1535Z.
2250. Iranian Military Procurement.
- 1.
- During conversation with Harriman 22nd, Shah said he is writing letter to President re number subjects such as oil, American investment in Iran, and Iran’s desire to continue military procurement from the United States. He described letter as follow-up to intimate discussions held with President in August.
- 2.
- Re military, Harriman indicated legislative situation is still murky. He said we hope that we may be able to proceed with next $50 million tranche but what will happen after next June 30 is “in the lap of the gods.”
- 3.
- Shah said just as Iran is projecting five-year economic program it is also planning five-year military program. Question is, therefore, important whether U.S. will be in position to continue military supplying during that period. He noted since 1964 he has purchased $400 million from U.S. (including two tranches still not negotiated) and $300 [million] elsewhere. Program over upcoming five-year period, he noted, is being planned at expenditure rate less than past three-year span. Harriman stressed importance of giving priority to economic development.
- 4.
- Once again Shah emphasized his unqualified preference to maintaining relationship with US in military field. Above all, he wants to keep air force American oriented.
- 5.
- Key question, Shah said, is procurement of tanks. He would like additional M–60’s and Sheridans so that his total tank force eventually will reach just over one thousand. When challenged re need for so many tanks, Shah said his military is emphasizing mobility, will in fact have fewer divisions, and in any case his goal is merely to place Iran “in balance” with its neighbors. He noted proposed tank complement is only three-fourths what Turks have.
- 6.
- If US unable to supply Sheridans, Shah said he will seek British tanks, i.e. Vickers. He was obviously annoyed that his hopes for tank factory in Iran to supply Pakistan, Saudi Arabia and other countries has fallen through. His impression is that British are to build Vickers factory in Pakistan, but I expressed doubt such deal been consummated. Shah showed some interest in possibility up-grading M–47 tanks but was totally unimpressed with seven-ton British CVRT tanks (Tehran 2193),2 primarily because he wants tanks with 105 mm guns.
- 7.
- For first time, Shah mentioned possibility of Soviet tanks, if appropriate deal cannot be made with U.S., British or other Western countries. Later when asked whether Soviets have quoted any tank prices, Shah answered in negative and gave as reason that Iranians have deliberately avoided encouraging Soviets in this sphere. After some thought, he added that GOI would hesitate long time before it would take such dramatic step.
- 8.
- To Harriman’s question whether any M–47 tanks have gone from Iran to Pakistan, Shah responded negatively but indicated Iran willing to sell up to 100 but this would depend on USG approval.
Meyer