Foreign Relations of the United States, 1964–1968, Volume XXII, Iran

254. Letter From President Johnson to the Shah of Iran¹

Washington, December 19, 1967.

Your Imperial Majesty:

I have now studied carefully your important letter of November 15² and want to give you the more detailed reply which I promised in my note of November 30.³

First let me say that your visit here was one of the bright spots of the year for me. I warmly appreciate the privilege of talking to a leader who shares our views and approach to the problems of the world and who understands the heavy burdens which those problems place upon this country.

I also appreciate the cordial reception you gave on November 22 to Governor Harriman who has reported to me on his valuable talk with you. I am glad we can maintain our continuing exchange of thoughts through talks like that as well as by letter.

What you tell me of your new five-year development program is indeed good news. The pace of Iran’s development arouses deep admiration everywhere.

I am especially heartened that economic development will continue Iran’s major goal. We have worked closely with you in this field. Now with the closing of our aid mission in Iran we look forward to a different, but equally productive, kind of economic cooperation between our two countries. We hope this will include increased participation by private American firms in Iran’s development, as you suggest, and we will do what we can to support American investment there.

I am also glad that planning is moving ahead on the water resources study on which we agreed in principle when you were here. I hope this will become another important aspect of our continuing economic cooperation. Our team can go to Iran as soon as we receive the preliminary data your authorities will provide and we can complete the Memorandum of Understanding now in Tehran for study.

In view of the importance of the revenues from Iran’s petroleum resources to the development of your country, it is natural that you should seek the maximum in exports of oil from Iran. I know that the American oil companies, for their part, take their commitments to the Government of Iran seriously. While the policies of the oil companies are not without some limitations deriving from commercial factors, I have every reason to believe that they desire to assure that Iran will receive as favorable treatment as possible. I was pleased to note Iran’s outstanding 20 percent increase in crude production in 1967 over 1966.

An added dividend of this healthy partnership is its encouragement of investment in other fields such as petrochemicals. I hope that this mutually beneficial relationship between Iran and the companies will continue to flourish.

I also want to continue our close relationship with Iran in the military field. We are ready to begin discussions on the third $50 million credit tranche under the amended 1964 Memorandum of Understanding. We intend to seek at the appropriate time the necessary authority and funds from the Congress for the fourth $50 million credit tranche. We cannot, of course, predict Congressional reaction to our worldwide credit sales request at this time.

With regard to the future, you may be sure that the United States continues to regard its military relationship with Iran as mutually important. As I told you when you were here, we will continue to do our best to be helpful. But it is still too early for me to say definitively what we can do beyond what is covered in our existing agreements.

We need, first, to know more specifically what your equipment and credit needs from us will be. I have heard from Ambassador Meyer of his and General Jablonsky’s discussions with you and your military authorities, and I suggest that those discussions continue. I hope that we will be able to assist you in assessing your equipment needs and in reducing their costs. We have already begun exploring your credit needs in a preliminary way with Governor Samii of your Central Bank.

In the light of Congressional views, we will also have to consider carefully with you the implications of the substantial military expenditures you project. You are, of course, the best judge of what Iran’s security requires, and I know your determination that every rial diverted from economic and social development to military expenditures be spent in Iran’s national interests. However, my deep interest in the success of Your Majesty’s development program prompts some concern about the contemplated size of your military program as mentioned in your letter and to Governor Harriman, and we will wish to discuss this concern with you.

It remains, Your Majesty, a source of great satisfaction to me to note the example which Iran is setting in the Middle East through its economic and social progress and its constructive position in international affairs. Your statesmanship in the Arab-Israeli crisis and your current efforts to strengthen your ties with the moderate Arab nations, as evidenced by your forthcoming trip to Saudi Arabia, provide rays of hope and encouragement in a troubled area. Americans everywhere are proud to have you and your country as our friends.

Mrs. Johnson and I would also like to take this opportunity to send you and the Empress our warm good wishes.

Sincerely,

Lyndon B. Johnson

1. Source: Johnson Library, National Security File, Special Head of State Correspondence File, Iran, 9/1/67–12/31/67. No classification marking.
2. Document 242.
3. Document 250.