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

134583. For Ambassador from Battle.

1.
Inter-departmental regional group for NEA considered military sales program for Iran March 21. No conclusions reached and IRG will resume discussion March 25.
2.
Some concern was voiced in IRG meeting particularly as to implications of any kind of “commitment” for 5-year period following 1968. Possible that IRG may decide some further study required, e.g., on [Page 486] nature and requirement of military threat facing Iran and impact on Iranian economic situation of program of this magnitude. In that event, possible that final IRG recommendation on 1969–73 program might be delayed for some time which we can now not precisely estimate. Could be as much as several weeks. Given that contingency, I would appreciate your personal views on desirability your presenting Shah in near future firm USG offer regarding $100 million credit sale for FY68, indicating decision on remainder of Shah’s request would be forthcoming as soon as possible. (As you well aware any IRG recommendation concerning FY68 program would still require approval by higher authority and we could not guarantee timing.)
3.
Would also appreciate your view as to whether political objectives of program would be achieved if it were to be reduced to $50 million or $75 million annually.
4.
Would appreciate your answer soonest prior to March 25 IRG meeting.
Rusk
  1. Source: Department of State, Central Files, DEF 19–8 US–IRAN. Secret; Priority; Limdis. Drafted by Eliot and Sober, cleared in draft by Rockwell and Battle, and approved by Eliot.