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Iran - The Shah (2)
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1555815
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Iran - The Shah (2)
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Presidential Correspondence with Foreign Leaders (Ford Administration)
Presidential Correspondence with Foreign Leaders
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Iran
Organization of Petroleum Exporting Countries
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1976
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The original documents are located in Box 2, folder "Iran - The Shah (2)" of the
National Security Adviser's Presidential Correspondence with Foreign Leaders
Collection at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives
collections. Works prepared by U.S. Government employees as part of their official duties are
in the public domain. The copyrights to materials written by other individuals or organizations
are presumed to remain with them. If you think any of the information displayed in the PDF is
subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
CLASSIFICATION-
UNCLAS
NATIONAL SECURITY COUNCIL
REFERRAL
Date: March 20, 1976
NSC log # 7601421
MEMORANDUM FOR:
George S. Springsteen
Executive Secretary
Department of State
DOCUMENT DESCRIPTION:
To:
Imperial Majesty Pahlavi
From: President
Date:
March 19, 1976
Subject: Message to the Shah of Iran on the Iranian New Year
ACTION REQUESTED:
Draft reply for:
President's Signature
White House Staff
Other
Direct reply
Furnish info copy
X Dispatch
Translation
Recommendations / Comments
Appropriate Handling
Other
Information
DUE DATE:
COMMENTS:
GERALD ? FORD
for Jeanne W. Davis
Staff Secretary
CLASSIFICATION: UNCLAS
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
WASHINGTON
March 19, 1976
Your Imperial Majesty:
This new Iranian year is a truly special occasion in
marking the Golden Anniversary of the Pahlavi Dynasty
and coinciding as well with the Bicentennial celebra-
tion of the United States. These two celebrations come
at a time when relations between our two countries are
especially close and when new cooperative ventures in
many fields are reaching fruition. While these occasions
cause us to look back with pleasure over many decades
of good bilateral relations, they also mark a new depar-
ture point for the development of even closer ties in
the future.
Your Imperial Majesty, on behalf of the United States
of America, I wish you great success during this com-
ing year. The American people have deep respect for
the goals of domestic development which you have set
for your country, and for your determination to main-
tain the path of peace through strength in foreign affairs.
With your wisdom and farsightedness, and the application
of Iran's resources and traditional energies, I know these
aims will be achieved.
Mrs. Ford joins me in sending best wishes as well to
Her Imperial Majesty, the Shahbanou.
Warm personal regards,
Herald R. Ford
His Imperial Majesty
Mohammad Reza Pahlavi
Shahanshah of Iran
Tehran
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
THE
PRESIDENT HAS SEEN
1421
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
ACTION
March 19, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
BRENT SCOWCROFT
SUBJECT:
Message to the Shah of Iran
on the Iranian New Year
This year, the Iranian New Year, celebrated on March 21, will
coincide with the 50th anniversary of the Pahlavi dynasty begun
by the Shah's father. The Iranian Government will celebrate
the event with special ceremonies and the Department of State
recommends that you sign a letter of congratulations to the Shah.
In view of our special relationship with Iran and your personal
acquaintance with the Shah, I concur in this recommendation.
A proposed letter is attached at Tab A and has been coordinated
with Mr. Hartmann's office. The message will be forwarded
telegraphically by the Department of State and your signed letter
will follow.
RECOMMENDATION: That you sign the letter to the Shah of
Iran at Tab A.
idential Correspondence with Foreign Leaders Collection at th
is
Bill Whydont
you Sign
Mis! alfead FORD
GERALD 2
Bud
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
MEMORANDUM
1421
NATIONAL SECURITY COUNCIL
ACTION
March 16, 1976
wtt for
MEMORANDUM FOR
BRENT SCOWCROFT
FROM:
ROBERT B. OAKLEY Th
SUBJECT:
Presidential Message to the Shah of Iran
on the Iranian New Year
State recommends that the President sign a letter of congratulations
to the Shah of Iran for the Iranian New Year, which coincides with
the 50th anniversary of the Pahlavi dynasty on March 21. Ambassador
Zahedi has also mentioned this to you (attached).
At Tab I is a memo for the President seeking his signature on such
a letter to the Shah. The text, drafted by State, has been coordinated
with Mr. Harmann's office (Smith).
RECOMMENDATION: That you forward the memo at Tab I to the
President as soon as possible. [The letter should be signed at the
latest by Friday, so that State can wire the message out in time
for the celebration on Sunday.]
APPROVE TAB I
APPROVE TAB I AS AMEND ED
NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R
THE WHITE HOUSE
WASHINGTON 2/26/76
Bob Brh- Oakly
and Zuheli suggests
use include the attached
seference in the
Presidents birthday
better to the Shah Burt October until not
Probably related
to Now Rouz
2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Pr
,G
TO COMMEMORATE THE FIFTIETH ANNIVERSARY
OF THE PAHLAVI DYNASTY
tono
2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Pr
Rosemary, It is usually not necessary to go the Pres
on these, but since a hard cy of the msg has been
requested, I see no other way. Loretta
IH
Also
You may want to use State's recom re
THEAR
the Iranian New Msges when you reply to your
1302 - a ltr written to the Pres and your 1365 - a
ltr written to the VP.
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
S/S 7604879
IF
DEPARTMENT OF STATE
Washington, D.C. 20520
March 10, 1976
LIMITED OFFICIAL USE
MEMORANDUM FOR MR. BRENT SCOWCROFT
THE WHITE HOUSE
Subject: New Year (Now-Ruz) Message
March 21 is the Iranian New Year. In the past
this occasion has not been marked with a Presidential
message to the Shah. This year, however, will mark
the 50th Anniversary of the Pahlavi dynasty, begun
by the Shah's father. The Iranian Government will
celebrate the event with special ceremonies. Iranian
officials have made it clear that they hope for a
Presidential message in recognition of the impor-
tance of the occasion to Iran.
We believe that a Presidential message this
year on Iranian New Year is highly appropriate in
view of the special relationship we have with Iran.
A message will also in part reciprocate for the
attention Iran is giving to our Bicentennial cele-
bration. The Department's suggested message is
attached.
If the President agrees to send the message,
the Department will transmit it telegraphically to
assure timely delivery. The Government of Iran
has, however, requested that a signed original of
the message be provided for inclusion in the of-
ficial historical record of the celebration of the
Golden Jubilee of the Pahlavi dynasty.
C.Arths
George S. Springsteen
Executive Secretary
Attachment:
Suggested message.
LIMITED OFFICIAL USE
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
Your Imperial Majesty:
This new Iranian year is a truly special occasion in marking the
Golden Anniversary of the Pahlavi dynasty and coinciding as well with
the two hundredth year since the birth of the United States. In a sense
this coincidence symbolizes the special linkage between our countries
and peoples at a time when the relationship between Iran and the United
INSERT
States is especially close, and when the broadening community of in-
terests, endeavors and opportunities continues to bring them closer
still.
Your Imperial Majesty, on behalf of the United States of America I
wish you great success during this coming year. The American people
have deep respect for the goals of domestic development which you
have set for your country, and for your determination to maintain
the path of peace through strength in foreign affairs. With your wis-
dom and far-sightedness, and the application of Iran's resources and
traditional energies, I know these aims will be achieved.
Imperial
Mrs. Ford joins me in sending best wishes as well to Her Majesty
the Shahbanou.
#arm personal regards,
Gerald R. Ford
Insent on as ranegraph anended postion for state Dept
about
that
first
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
If
LIMITED OFFICIAL USE
NEA/IRN:BBMORTON:AMF
3/8/76 X20574
NEA: SSOBER
NEA/IRN: CWNAAS
S/S:
WHITE HOUSE:
S/S-S MEDENHAM
ROUTINE
TEHRAN
State draft
SS
E.O. 11652: N/A
BBM
TAGS: PFOR, IR
CWN
SUBJECT: SUGGESTED PRESIDENTIAL NOW-RUZ MESSAGE
S/S
WH
1. PLEASE DELIVER FOLLOWING MESSAGE TO SHAH AT APPROPRIATE
TIME PRIOR TO MARCH 21.
MED
QUOTE. YOUR IMPERIAL MAJESTY:
THE IRANIAN YEAR WHICH BEGINS THIS MARCH 21 MARKS THE GOLD-
EN JUBILEE OF THE PAHLAVI DYNASTY AND COINCIDES AS WELL
WITH THE BICENTENNIAL CELEBRATION OF THE UNITED STATES.
THESE TWO CELEBRATIONS COME AT A TIME WHEN RELATIONS BE-
INSERT
TWEEN OUR TWO COUNTRIES ARE ESPECIALLY CLOSE AND WHEN NEW
COOPERATIVE VENTURES IN MANY FIELDS ARE REACHING FRUITION.
WHILE THESE OCCASIONS CAUSE US TO LOOK BACK WITH PLEASURE
OVER MANY DECADES OF GOOD BILATERAL RELATIONS, THEY ALSO
MARK A NEW DEPARTURE POINT FOR THE DEVELOPMENT OF EVEN
CLOSER TIES IN THE FUTURE.
ON BEHALF OF THE AMERICAN PEOPLE, YOUR IMPERIAL MAJESTY, I
WISH YOU GREAT SUCCESS IN THE NEW IRANIAN YEAR AS YOU GUIDE
YOUR PEOPLE INTO THE BRIGHT FUTURE YOU HAVE OUTLINED IN
LIMITED OFFICIAL USE
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
FORM DS 322A10CR}
LIMITED OFFICIAL USE
I 2
YOUR FAR-SIGHTED REVOLUTION OF THE SHAH AND PEOPLE. MY
WIFE JOINS ME IN SENDING BEST WISHES AS WELL TO HER
MAJESTY, THE SHAHBANOU, WHO HAS DEEPLY IMPRESSED THE
AMERICAN PEOPLE DURING HER VISITS TO THE UNITED STATES
AS ONE WHO SHARES YOUR HIGH ASPIRATIONS FOR THE PROGRESS
OF YOUR NATION AND PEOPLE. WITH SINCERE REGARDS, GERALD
R. FORD UNQUOTE.
with personal
2. WHITE HOUSE DOES NOT PLAN TO RELEASE TEXT BUT HAS NO
OBJECTION SHOULD GOI WISH TO DO SO. DECONTROL UPON
DELIVERY. YY
LIMITED OFFICIAL USE
2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Pre
THE WHITE HOUSE
WASHINGTON
3/19/76
Art:
Have had two calls on this one, appears
urgent
D/vis/ Davis and Oakley's office called and
the letter to the Shah has to be signed today or
else it will be to late, its for this Sunday
....
tom
could you let me know so I can get back with
them
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
DOC
RECD
LOG NUMBER
MO
DA
MO
DA
HR
NSC CORRESPONDENCE PROFILE
3
10
3
17
7601421
S/S 7604879
Calley INITIAL ACTION o
TO: PRES
FROM: SECSTATE
UNCL LOG IN/
SCOWCROFT
+
SECDEF
LOU
NO FORN
NODIS
HYLAND
DCI
X REF
C
EYES ONLY EXDIS
DAVIS
$
CODEWORD
SOURCE/CLASS/DESCRIPTION
STATE EXSEC +
SUBJECT State Recom OTHER re he May re the TS SENSITIVE
Jania New Year (Now - Ruz)
mar 21, 19 lb
INTERNAL ROUTING AND DISTRIBUTION
REC
ACTION REQUIRED
ACTION
CONCUR-
COOR-
INFO
CY
RENCE
DINATE
FOR
ADV CYS S'CROFT/ WGH
MEMO FOR SCOWCROFT.
STAFF SECRETARY
MEMO
FOR PRES if appropriate *
CONGRESSIONAL
REPLY FOR
ECONOMIC
DISTRIBUTION/INITIAL ACTION ASGMT
APPROPRIATE ACTION
EUR/ CANADA / OCEANS
MEMO
TO
FAR EAST/ PRC
RECOMMENDATIONS
INTELLIGENCE
JOINT MEMO
LATIN AMERICA
REFER TO
FOR:
MID EAST/ NO. AFRICA
+
ANY ACTION NECESSARY?
NSC PLANNING
CONCURRENCE
(.
PROGRAM ANALYSIS
DUE DATE:
3-12
SCIENTIFIC
COMMENTS: (INCLUDING SPECIAL INSTRUCTIONS)
SUB-SAH/ AFRICA/ UN
Leonard, M.
DATE
FROM
TO
STATUS
DUE
CY TO
3/16/76
Oakley
Scowcroft
X
3-16
Pres
his for decision SUBSEQUENT ACTION decision REQUIRED (OR TAKEN):
3/19
P
SUBSEQUENT ROUTING/ACTIONS
3-19
C
Pres sgd ter to Shah
DISPATCH
NOTIFY
NSC/S DISP INSTR
s/s per Horablow
3/20/76
T2D
MICROFILM a FILE ROMTS
M/F'D
BY
176
SPECIAL DISPOSITION:
IF
CRT ID:
SPECIAL INDEXING CRW! 7601302 EP 7601365
NS
DY
OPEN MJF
FP
CLOSE A
PA
SUSPENSE CY ATTACHED X
NSC 76-21
U.S. GOVERNMENT PRINTING OFFICE - 599-022 1976
599-022
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
MEMORANDUM
PRESIDENT
HAS
THE WHITE HOUSE
CONFIDENTIAL
WASHINGTON
March 22, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
BRENT SCOWCROFT
B
SUBJECT:
Response from the Shah
ART
on Nuclear Cooperation
On February 23, ERDA Administrator Seamans and Under Secretary
Maw met with the Shah in Tehran. Following your instructions (Tab C),
they explored with the Shah the matter of nuclear controls that would
permit us to reach a nuclear agreement with Iran. A report on these
discussions is now being prepared.
Dr. Seamans and Mr. Maw delivered your letter to the Shah (Tab B)
emphasizing our desire for fruitful nuclear cooperation with Iran and
our commitment to the prevention of the use of nuclear technology for
weapons purposes. We have asked Iran to play a leading role in
controlling the spread of sensitive nuclear technology by foregoing the
acquisition of nationally owned and operated reprocessing plants in
favor of multinational control.
The Shah has responded warmly to your letter (Tab A). While
confirming his own strong non-proliferation stance, he has pointed
out that the Non-Proliferation Treaty (NPT) not only is intended to
prevent proliferation but to facilitate the diffusion of peaceful nuclear
technology. He has given no explicit commitment to multinational
reprocessing, though his remarks do not rule it out and his oral remarks
to Seamans and Maw give us some hope that a mutually acceptable com-
promise formula may be attainable.
Our next nuclear discussions with Iran are scheduled for mid-April, and
a paper is being prepared for your consideration establishing our position
for the April meeting.
No action is required on your part regarding the attached correspondence.
CONFIDENTIAL/
3/5/04
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
29
IMPERIAL EMBASSY OF IRAN
March 10, 1976
The Ambassador
Dear President Ford
I have the honor and the privilege to
forward to you the enclosed letter dated March 4,
1976 which I have just received from my beloved
Sovereign, His Imperial Majesty the Shahanshah
Aryamehr. The letter is in response to your own
which was delivered to His Imperial Majesty by
Dr. Seamans and Under-Secretary Maw during
their recent audience in Tehran.
May I also say what a great honor and a
pleasure it will be, Mr. President, to see you this
coming Monday at the swearing in of Governor
Scranton and then again on Tuesday when you
meet with our Minister of Economic Affairs and
Finance, His Excellency Houshang Ansary.
With every assurance of my profound
respect and high regard.
your Success ad may God Bless mm,
may I congla personal talete your Victory and
my simly assing vas
The Honorable Gerald R. Ford
aulen giland
President of the United States of America
The White House
Washington, D.C.
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
2C
4th March, 1976.
Dear Mr. President,
I have received with great pleasure the letter which you entrusted
to your Representatives Dr. Seamans and Under-Secretary Maw with whom I
had interesting discussions during their recent visit to Tehran.
The personal interest which you have shown in the cooperation
between our two countries in the field of nuclear energy is greatly appreciated
and represents an important step forward in the conclusion of the proposed
agreement between Iran and the United States of America.
I fully share your concern for the non-proliferation of nuclear weapons
and, I appreciate your leadership and the significant role which the United States
of America has assumed in this respect. Iran, as a signatory to the Non-
Proliferation Treaty is certainly anxious to see that the Treaty is applied as
widely as possible in its letter and spirit and will deploy any effort to foster this
goal.
As you, Mr. President, are no doubt aware, the Non-Proliferation
Treaty has two important aims that consist of preventing the spread of nuclear
weapons and at the same time facilitating the exchange of nuclear technology,
equipment and materials for peaceful purposes. As you yourself know so well,
Iran has initiated an important nuclear programme in order to support its rapid
economic development which necessitates the widespread and increasing use of
energy. In order to assure the successful implementation of our nuclear pro-
gramme, we will have to be assured of a flow of nuclear technology and the transfer
of equipment and materials based on sound economic considerations. I would
therefore very much hope, Mr. President, that your non-proliferation policy
would remain flexible enough to allow a fruitful and meaningful cooperation to
prevail between our two countries in the field of nuclear energy.
In keeping with the special relationship between our two countries
and the importance which you and I attach to this matter, we look forward to
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
-2-
continuing our discussions in this regard which I trust will lead to the conclusion
of the cooperation agreement in nuclear energy.
With best wishes,
Sincerely,
M.R.Pahlan
The Honourable Gerald R. Ford,
President of the United States of America,
WASHINGTON, D.C.
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
2D
REWRITE 1444
CONFIDENTIAL
3/20/76
MEMORANDUM FOR:
THE PRESIDENT
FROM:
BRENT SCOWCROFT
SUBJECT:
Response from the Shah
on Nuclear Cooperation
On February 23, ERDA Administrator Seamans and Under Secretary
Maw met with the Shah in Tehran. Following your instructions (Tab C),
they explored with the Shah the matter of nuclear controls that would
permit us to reach a nuclear agreement with Iran. A report on these
discussions is now being prepared.
Dr. Seamans and Mr. Maw delivered your letter to the Shah (Tab B)
emphasising our desire for fruitful nuclear cooperation with Iran and
our commitment to the prevention of the use of nuclear technology for
weapons purposes. We have asked Iran to play a leading role in
controlling the spread of sensitive nuclear technology by foregoing the
acquisition of nationally owned and operated reprocessing plants in
favor of multinational control.
The Shah has responded warmly to your letter (Tab A). While
confirming his own strong non-proliferation stance, he has pointed
out that the Non-Proliferation Treaty (NPT) not only is intended to
prevent proliferation but to facilitate the diffusion of peaceful nuclear
technology. He has given no explicit commitment to multinational
reprocessing, though his remarks do not rule it out and his oral remarks
to Seamans and Maw give us some hope that a mutually acceptable com-
promise formula may be attainable.
Our next nuclear discussions with Iran are scheduled for mid-April, and
a paper is being prepared for your consideration establishing our position
for the April meeting.
No action is required on your part regarding the attached correspondence.
FORD
R
GERALD
LIBRARY
CONFIDENTIAL/GDS
bh 3/5/04
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
2E
MEMORANDUM
INFORMATION - 1444
THE WHITE HOUSE
WASHINGTON
CONFIDENTIAL
MEMORANDUM FOR:
THE PRESIDENT
FROM:
BRENT SCOWCROFT
SUBJECT:
Response from the Shah
on Nuclear Cooperation
On February 23, ERDA Administrator Seamans and Under Secretary
Maw met with the Shah in Tehran. Following your instructions (Tab C),
they explored with the Shah for common understanding in the matter of
nuclear controls that would permit us to reach a nuclear agreement with
Iran. A report on these discussions is now being prepared.
Dr. Seamans and Mr. Maw delivered your letter to the Shah (Tab B) in
which you emphasized both our desire for fruitful nuclear cooperation
with Iran and our commitment to the prevention of the use of peaceful
nuclear technology for weapons purposes. In this latter regard, we
have asked Iran to take a leaderchip role in controlling the spread of
sensitive nuclear technology by foregoing the acquisition of nationally
owned and operated reprocessing plants in favor of one under multinational
control.
The Shah has responded in wa rm tones to your letter (Tab A). While
confirming his own strong work non-proliferation stance, he has made the
point and that the Non-Proliferation Treaty (NPT) not only is intended to
prevent proliferation but to facilitate the diffusion of peaceful nuclear
technology. He has given no explicit commitment to multinational re-
processing, though his remarks do not rule it out and his oral remarks to
Seamans and Maw give us some hope that a mutually acceptable compromise
formula may be attainable.
and
Our next nuclear discussions with Iran are scheduled for mid-April, al-
though the subject may come up during the Vice President's talks with
the Shah next week. A paper is being prepared for your approval estab-
lishing our position for the April meeting.
consideration
No further action is required on your part regarding the attached
correspondence.
FORD Creamy
CONFIDENTIAL/GDS
bh 3/5/04
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
at
DOC
RECD
LOG NUMBER
MO
DA
MO
DA
HR
INITIAL ACTION O
NSC CORRESPONDENCE PRCFILE
3103
n
18
760 1444
TO: PRES
X
FROM: SECSTATE
$/S
Oahley UNCLAS LOG IN/OUT
SCOWCROFT
SECDEF
EOU
NO. FORM
NODIS
HYLAND
DCI
X REF
C
EYES ONLY. EXDIS
DAVIS
STATE EXSEC
$
CODEWORD
SOURCE/CLASS/DESCRIPTION
OTHER PAHLAVI Mottamm.40
TS
SENSITIVE
/ ZAHeDI, ARDESHIR
SUBJECT Ack ltr to Pres fm SHAH Pablavi of Iran
re US & non experation in nuclear
every TERNAL ACTION ROUTING research AND CONCUR- RENCE DISTRIBUTION DINATE COOR- X INFO
REC
ACTION REQUIRED
CY
FOR
ADV
S'CROFT/WGH
MEMO FOR SCOWCROFT
STAFF SECRETARY
MEMO FOR PRES
CONGRESSIONAL
REPLY FOR
ECONOMIC
DISTRIBUTION/INITIAL ACTION ASGMT
APPROPRIATE ACTION
EUR/ CANADA/ OCEANS
MEMO
TO
FAR EAST/PRC
RECOMMENDATIONS
INTELLIGENCE
JOINT MEMO
LATIN AMERICA
REFER TO
FOR:
MID EAST/ NO. AFRICA
X
ANY ACTION NECESSARY?
-
NSC PLANNING
CONCURRENCE
4
PROGRAM ANALYSIS
SCIENTIFIC
DUE DATE: 3/20
COMMENTS: INCLUDING SPECIAL INSTRUCTIONS
SUB-SAH/ AFRICA/ UN
DATE
FROM
Rx
TO
STATUS
DUE
CY TO
3/16
X
3-22
has Info SUBSEQUENT for ACTION REQUIRED Info (OR TAKENI:
3/23
Pres
SUBSEQUENT ROUTING/ACTIONS
3-24
NSCls
C
Noted by Pres
DISPATCH
NOTIFY
MICROFILM & FILE ROMTS
NSC/S DISP INSTR
M/F D
SPECIAL DISPOSITION:
1976
BY
IF
CRT 1000
SPECIAL INDEXING TYPE = HS
NS
DY
OPEN MAK
WH SA FP
SUSPENSE CY ATTACHED +
CLOSE Mr
PA
NSC 76-21
U.S. GOVERNMENT PRINTING OFFICE - 599-022 - 1976
599-022
)
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
WASHINGTON
SEGRET
October 29, 1976
Your Imperial Majesty:
Your decision not to insist upon an oil price increase
at the Bali OPEC meeting in May was an act of statesman-
ship which was important in determining the outcome of
that meeting. Avoidance of an oil price increase is of
such great importance to the maintenance of the global
economic recovery now underway that I am writing to request
your continued constructive leadership in order to prevent
such an increase.
I have been kept fully informed of your concern earlier
this year that decreased oil exports would seriously
affect Iran's internal economic development and its ability
to fulfill its role in the region. I have carefully noted,
therefore, that the increased economic activity associated
with recovery in a number of oil-importing countries is
reducing the difficulties which you had anticipated in
financing Iran's development and defense plans. I am told
that in the last four months Iranian crude production has
averaged nearly six million barrels a day.
It now appears likely that the OPEC countries will earn
$125 billion this year from their oil exports, about
20 percent more than in 1975 and more than 400 percent
more than they earned in 1973 on a similar volume of oil
exports. In contrast, our most careful analysis of the
dollar prices of exports from the major industrialized
countries to the oil producers indicates that these prices
have risen by only 30 percent since mid-1973, and only
4 percent over the past year. Prices for our largest
export -- grain -- have actually fallen; wheat prices
averaged $150 per ton in the first half of this year,
compared to $200 per ton in 1974.
SECRET
DECLASSIFIED
E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES State Review 9/16/03
BY
tab
, NARA, DATE 3/5/14
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
SECRET
- 2 -
The progress of industrialized countries in controlling
inflation through major policy actions has been dramatic,
considering all circumstances, with the average rate of
inflation for major countries now standing at half the 1974
rate. In the United States prices are rising at about
6 percent annually, compared with 12 percent in 1974. It
is likewise encouraging that certain oil-importing developing
countries have begun to narrow their current account deficits
in 1976 as a result of reduced inflation, rising exports and
improved terms of trade. However, the balance of payments
situation of many countries remains critical, while that of
less fortunate energy deficient developing countries is
truly desperate. Many countries have in fact virtually
reached the end of their ability to borrow.
My deep concern, which I bring to your attention in the
spirit of our close relationship, is that the favorable
trends toward economic recovery will be reversed by the
negative inflationary and balance of payments effects of
a new increase in the price of oil.- Several important
industrialized countries which are experiencing economic
difficulties and the attendant danger of political in-
stability would encounter still more severe economic problems
if faced next year with a new oil price increase. Similarly,
the energy deficient developing nations would suffer
additional damage to their prospects for economic growth
and a further erosion of their already weak borrowing
ability. This would add major new strains to the inter-
national financial system and intensify pressure on both
industrialized and oil-producing nations to provide balance
of payments support. Thus, the fragile and uneven nature
of the global economic recovery requires that responsible
nations avoid action which would endanger it.
Secretary Kissinger reported fully to me on his talks with
you last August, and noted your concern about the need to
maintain close cooperation between our two countries
despite opposition in Congress and other circles. As the
Secretary told you, this Administration is determined to
continue to assist your nation in developing its military
establishment and meeting its goals for economic development
and to cooperate with Iran in seeking solutions to major
regional and worldwide economic and political problems. I
am sure you have been fully informed of the Administration's
SECRET
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
SECRET
- 3 -
successful resistance to Congressional attempts to block
the sale of F-16 aircraft and other military equipment
to Iran. The struggle with certain segments of American
opinion on this subject has by no means been won, however,
and I fear that there will be further and perhaps greater
pressures next year. By working together, we can overcome
these pressures and solidify the close relationship between
our two countries. However, Iranian support for an OPEC
decision to increase the price of oil at this time would
play directly into the hands of those who have been
attacking our relationship.
The determination to strengthen the cooperation between
important producing and consuming nations, which you and
I share, is not universal. And yet this cooperation, and
that between the developing and developed worlds, is a
key element in the pursuit of the global political and
economic stability which will allow all nations to achieve
better lives for their peoples. I believe that further
progress in a number of areas of the North-South relation-
ship, including the official development assistance made
available to the developing world, should be possible in
the coming months. Your resistance to a further increase
in the price of oil could be a significant influence in
restraining the growth of pressures which threaten to divert
us from the path of positive achievement in this important
area.
Given this situation, I believe that the outcome of the
December OPEC meeting will have far reaching economic and
political consequences. Your Imperial Majesty's personal
stature and Iran's position of international leadership
provide an opportunity for a historically important contri-
bution to political stability, economic prosperity and
cooperation beneficial to Iran and to all nations. I
therefore urge Your Imperial Majesty to give these concerns
serious and positive consideration in making your decision
on this matter.
Sincerely,
Gerall R. Ford
His Imperial Majesty
Mohammad Reza Pahlavi
Shahanshah of Iran
Tehran
SECRET
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
4
DEPARTMENT OF STATE
Department SECRET ,State
UNITEDY AMERICA the
TELEGRA!
PAGESTATES OF
STATE 267996
61
ORIGIN NODS-00
INFO OCT-01 IS0-00 /001 R
COPY 8 OF 15 COPIES
S
DRAFTED BY E:WOROGERS:CJS
APPROVED 87 E:WOROGERS
W.H.: RHORMATS
S/S:0-AHOTTO
022321
0 3002312 OCT 76 ZFF4
76
FM SECSTATE WASHDC
TO AMEMBASSY TEHRAN NIACT IMMEDIATE
0
SECRET STATE 267996
NODIS
EYES ONLY FOR THE AMBASSADOR
E.O. 11652: XGDS
TAGS:PFOR, ENRG, IR
UD
SUBJECT: LETTER FROM PRESIDENT FORD TO HIS IMPERIAL
MAJESTY MOHAMMAD REZA PAHLAVI:
1. AT THE EARLIEST APPROPRIATE TIME, AND IN ANY EVENT,
NO LATER THAN COB MONDAY, NOVEMBER 1, PLEASE DELIVER THE
FOLLOWING PERSONAL MESSAGE FROM PRESIDENT FORD TO HIS
72
IMPERIAL MAJESTY, MOHAMMAD REZA PAHLAVI:
2. BEGIN TEXT. YOUR IMPERIAL MAJESTY: YOUR DECISION NOT
-
TO INSIST UPON AN OIL PRICE INCREASE AT THE BALI OPEC
MEETING IN MAY WAS AN ACT OF STATESMANSHIP WHICH HAS
IMPORTANT IN DETERMINING THE OUTCOME OF THAT MEETING,
AVOIDANCE OF AN OIL PRICE INCREASE IS OF SUCH GREAT
IMPORTANCE TO THE MAINTENANCE OF THE GLOBAL ECONOMIC
RECOVERY NOW UNDERWAY THAT I AM WRITING TO REQUEST YOUR
CONTINUED CONSTRUCTIVE LEADERSHIP IN. ORDER TO PREVENT
SUCH AN INCREASE.
up
SECRET
FORD
DECLASSIFIED
&
E.O. 12958, SEC. 3.5
STATE DEPT, GUIDELINES State Review 9/16/03
LIBRARY
BY bler
NARA DATE 3/5/04
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET
Digitized from Boxiz of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
OF
STATE
Department of State
AMERICA
SECRET
TELEGRAI
STATES
OF
AGE 02
STATE 267996
J.
I HAVE BEEN KEPT FULLY INFORMED OF YOUR CONCERN EARLIER
THIS YEAR THAT DECREASED OIL EXPORTS WOULD SERIOUSLY AFFECT
IRAN'S INTERNAL ECONOMIC DEVELOPMENT AND ITS ABILITY TO
FULFILL ITS RULE IN THE REGION. I HAVE CAREFULLY NOTED,
THEREFORE, THAT THE INCREASED ECONOMIC ACTIVITY
ASSOCIATED WITH RECOVERY IN A NUMBER OF OIL -IMPORTING
COUNTRIES IS REDUCING THE DIFFICULTIES WHICH YOU HAD
ANTICIPATED IN FINANCING IRANIS DEVELOPMENT AND DEFENSE
PLANS. I An TOLD THAT IN THE LAST FOUR MONTHS IRANIAN
CRUDE PRODUCTION HAS AVERAGED NEARLY SIX MILLION BARRELS
A DAY.
4. IT NOW APPEARS LIKELY THAT THE OPEC COUNTRIES WILL
EARN $125 BILLION THIS YEAR FROM THEIR OIL EXPORTS,
ABOUT 20 MORE THAN IN 1975 AND MORE THAN 400 MORE THAN
THEY EARNED IN 1973 ON A SIMILAR VOLUME OF OIL EXPORTS.
IN CONTRAST, OUR MOST CAREFUL ANALYSIS OF THE DOLLAR
PRICES OF EXPORTS FROM THE MAJOR INDUSTRIALIZED
COUNTRIES TO THE OIL PRODUCERS INDICATES THAT THESE
PRICES HAVE RISEN BY ONLY 36 SINCE 010-1973, AND ONLY
4 OVER THE PAST YEAR. PRICES FOR OUR LARGEST EXPORT --
S
GRAIN 19 19 HAVE ACTUALLY FALLEN; WHEAT PRICES AVERAGED
6150 PER TON IN THE FIRST HALF OF THIS YEAR, COMPARED
TO $200 PER TON IN 1974,
5. THE PROGRESS OF INDUSTRIALIZED COUNTRIES IN CON-
TROLLING INFLATION THROUGH MAJOR POLICY ACTIONS HAS BEEN
DRAMATIC, CONSIDERING ALL CIRCUMSTANCES, WITH THE AVERAGE
RATE OF INFLATION FOR MAJOR COUNTRIES NOW STANDING AT
HALF THE 1974 RATE. IN THE UNITED STATES PRICES ARE
RISING AT ABOUT 6 ANNUALLY, COMPARED WITH 12 IN 1974.
IT IS LIKEWISE ENCOURAGING THAT CERTAIN OIL-IMPORTING
DEVELOPING COUNTRIES HAVE BEGUN TO NARROW THEIR CURRENT
ACCOUNT DEFICITS IN 1976 AS A RESULT OF REDUCED
INFLATION, RISING EXPORTS AND IMPROVED TERMS OF TRADE.
HOWEVER, THE BALANCE OF PAYMENTS SITUATION OF MANY
COUNTRIES REMAINS CRITICAL, WHILE THAT OF LESS
FORTUNATE ENERGY DEFICIENT DEVELOPING COUNTRIES IS TRULY
DESPERATE. MANY COUNTRIES HAVE IN FACT VIRTUALLY
REACHED THE END OF THEIR ABILITY TO BORROW.
SECRET
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
DEPARTMENT OF STATE
1
Department of State
UNITED
AMERICA
TELEGRA
STATES
OF
SECRET
PAGE 03
STATE 267996
6. MY DEEP CONCERN, WHICH I BRING TO YOUR ATTENTION IN
THE SPIRIT OF OUR CLOSE RELATIONSHIP, IS THAT THE
S
FAVORABLE TRENDS TOWARD ECONOMIC RECOVERY WILL BE
REVERSED BY THE NEGATIVE INFLATIONARY AND BALANCE OF
PAYMENTS EFFECTS OF A NEW INCREASE IN ThE PRICE OF OIL.
SEVERAL IMPORTANT INDUSTRIALIZED COUNTRIES WHICH ARE
EXPERIENCING ECONOMIC DIFFICULTIES AND THE ATTENDANT
DANGER OF POLITICAL INSTABILITY WOULD ENCOUNTER STILL
MORE SEVERE ECONOMIC PROBLEMS IF FACED NEXT YEAR WITH
N
A NEW OIL PRICE INCREASE. SIMILARLY, THE ENERGY
DEFICIENT DEVELOPING NATIONS WOULD SUFFER ADDITIONAL
DAMAGE TO THEIR PROSPECTS FOR ECONOMIC GROWTH AND A
-
FURTHER EROSION OF THEIR ALREADY WEAK BORROWING ABILITY.
THIS WOULD ADD MAJOR NEW STRAINS TO THE INTERNATIONAL
SECRET
FINANCIAL SYSTEM AND INTENSIFY PRESSURE ON SOTH
INDUSTRIALIZED AND DIL-PRODUCING NATIONS TO PROVIDE
BALANCE OF PAYMENTS SUPPORT. THUS, THE FRAGILE AND
UNEVEN NATURE OF THE GLOBAL ECONOMIC RECOVERY REQUIRES
THAT RESPONSIBLE NATIONS AVOID ACTION WHICH WOULD ENDANGER
IT.
7. SECRETARY KISSINGER REPORTED FULLY TO ME ON HIS TALKS
WITH YOU LAST AUGUST, AND NOTED YOUR CONCERN ABOUT THE
NEED TO MAINTAIN CLOSE COOPERATION BETWEEN OUR TWO
COUNTRIES DESPITE OPPOSITION IN CONGRESS AND OTHER
N
CIRCLES. AS THE SECRETARY TOLD YOU, THIS ADMINISTRATION
IS DETERMINED TO CONTINUE TO ASSIST YOUR NATION IN
DEVELOPING ITS MILITARY ESTABLISHMENT AND MEETING ITS
GOALS FOR ECONOMIC DEVELOPMENT AND TO COOPERATE WITH
IRAN IN SEEKING SOLUTIONS TO MAJOR REGIONAL AND WORLD-
WIDE ECONOMIC AND POLITICAL PROBLEMS. I AM SURE YOU
HAVE BEEN FULLY INFORMED OF THE ADMINISTRATION'S
D
SUCCESSFUL RESISTANCE TO CONGRESSIONAL ATTEMPTS TO
BLOCK THE SALE OF F-16 AIRCRAFT AND OTHER MILITARY
EQUIPMENT TO IRAN. THE STRUGGLES WITH CERTAIN SEGMENTS
OF AMERICAN OPINION ON THIS SUBJECT HAS BY NO MEANS BEEN
WON, HWOEVER, AND I FEAR THAT THERE WILL BE FURTHER
AND PERHAPS GREATER PRESSURES NEXT YEAR. BY WORKING
TOGETHER, WE CAN OVERCOME THESE PRESSURES AND SOLIDIFY
SECRET
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
DEPARTMENT
OF
STATE
Department of State
UNITED
TELEGRAI
SECRET
STATES
OF
PAGE 04
STATE 267996
THE CLOSE RELATIONSHIP BETWEEN OUR TWO COUNTRIES.
HOWEVER, IRANIAN SUPPORT FOR AN OPEC DECISION TO INCREASE
S
THE PRICE OF OIL AT THIS TIME WOULD PLAY DIRECTLY INTO
THE HANDS OF THOSE WFO HAVE EEEN ATTACKING OUR
RELATIONSHIP.
8. THE DETERMINATION TO STRENGTHEN THE COOPERATION
BETWEEN IMPORTANT PRODUCING AND CONSUMING NATIONS,
WHICH YOU AND I SHARE, IS NOT UNIVERSAL. AND YET THIS
COOPERATION, AND THAT BETWEEN THE DEVELOPING AND
DEVELOPED WORLDS, IS A KEY ELEMENT IN THE PURSUIT OF
THE GLOBAL POLITICAL AND ECONOMIC STABILITY WHICH WILL
0
ALLOW ALL NATIONS TO ACHIEVE BETTER LIVES FOR THEIR
PEOPLES. I BELIEVE THAT FURTHER PROGRESS IN A NUMBER
OF AREAS OF THE NORTH-SOUTH RELATIONSHIP, INCLUDING THE
-
OFFICIAL DEVELOPMENT ASSISTANCE MADE AVAILABLE TO THE
DEVELOPING WORLD, SHOULD BE POSSIBLE IN THE COMING
MONTHS. YOUR RESISTANCE TO A FURTHER INCREASE IN THE
PRICE OF OIL COULD BE A SIGNIFICANT INFLUENCE IN
RESTRAINING THE GROWTH OF PRESSURES WHICH THREATEN TO
DIVERT US FROM THE PATH OF POSITIVE ACHIEVEMENT IN THIS
IMPORTANT AREA.
SECRET
9. GIVEN THIS SITUATION, I BELIEVE THAT THE OUTCOME
OF THE DECEMBER OPEC MEETING WILL HAVE FAR REACHING
ECONOMIC AND POLITICAL CONSEQUENCES. YOUR IMPERIAL
MAJESTY'S PERSONAL STATURE AND IRANIS POSITION OF
INTERNATIONAL LEADERSHIP PROVIDE AN OPPORTUNITY FOR
A HISTORICALLY IMPORTANT CONTRIBUTION TO POLITICAL
STADILITY, ECONOMIC PROSPERITY AND COOPERATION BENEFICIAL
-
TO IRAN AND TO ALL NATIONS. I THEREFORE URGE YOUR
IMPERIAL MAJESTY TO GIVE THESE CONCERNS SERIOUS AND
POSITIVE CONSIDERATION IN MAKING YOUR DECISION ON THIS
MATTER. SINCERELY, GERALD R. FORD END TEXT.
10. THE ABOVE LETTER SHOULD BE DATED OCTOBER 29, 1976.
KISSINGER
SECRET
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald Ford Presidential Library
WH
5
DEPARTMENT OF STATE
67 67860
Department of State
UNITED STATES OF AMERICA
TELEGRAI
SECRET
NOD635
PAGE 01
STATE 268203
41
ORIGIN NODS-00
INFO OCT-01 IS0-00 /001 R
DRAFTED BY E:MMINNIES:RR
APPROVED BY E:R SORENSON
Copy 12 of 15 copies
S/S =0 RMPERITO
036112
0 3019197 OCT 76 ZFF4
FM SECSTATE WASHDC
TO AMEMBASSY TEHRAN NIACT IMMEDIATE
SECRET STATE 268203
NODIS
EYES ONLY FOR THE AMBASSADOR
E.O. 11552: XGDS
TAGS: PFOR, ENRG, VE
SUBJECTILETTER FROM PRESIDENT FORD TO HIS IMPERIAL MAJESTY
MOHAMMAD REZA PAHLAVI
REF: STATE 267996 (NODIS)
1. AS INDICATED IN SORENSUN-HELMS TELECON OF SEPTEMBER 30,
(11:30 A.N. WASHINGTON TIME), MESSAGE FROM PRESIDENT TO
SHAH TRANSMITTED REFTEL CONTAINED ERRORS WHICH SHOULD BE
CORRECTED BEFORE DELIVERY, SPECIFICALLY, PERCENT SIGNS
AFTER SEVERAL FIGURES IN BOTH PARA 4 AND 5 OF REFTEL WERE
OMITTED DURING TRANSMISSION,
2. CORRECTED PARAGRAPH 4 SHOULD READ:
QUOTE. IT NOW APPEARS LIKELY THAT THE OPEC COUNTRIES WILL
EARN $125 BILLION THIS YEAR FROM THEIR OIL EXPORTS, ABOUT
S
20 PERCENT MORE THAN IN 1975 AND MORE THAN 430 PERCENT
MORE THAN THEY EARNED IN 1973 ON A SIMILAR VOLUME OF OIL
EXPORTS. IN CONTRAST, OUR MOST CAREFUL ANALYSIS OF THE
FORD
SECRET
DECLASSIFIED
STATE DEPT, GUIDELINES state Deview 9/16/03 9/16/03
E.O. 12958, SEC. 3.5
RV NOT TO BE REPRODUC 3/3/24 WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
DEPARTMENT OF STATE
Department of State
UNITED OF
TELEGRA
STATES
SECRET
PAGE 02
STATE 268203
DOLLAR PRICES OF EXPORTS FROM THE MAJOR INDUSTRIALIZED
S
COUNTRIES TO THE OIL PRODUCERS INDICATES THAT THESE PRICES
HAVE RISEN BY ONLY 30 PERCENT SINCE MID-1973, AND ONLY
4 PERCENT OVER THE PAST YEAR. PRICES FOR OUR LARGEST
EXPORT -- GRAIN --- HAVE ACTUALLY FALLEN; WHEAT PRICES
AVERAGEO $150 PER TON IN THE FIRST HALF OF THIS YEAR,
COMPARED TO $200 PER TON IN 1974. UNOUOTE
N
3. CORRECTED PARAGRAPH 5, SECOND SENTENCE, SHOULD READ:
QUOTE. IN THE UNITED STATES PRICES ARE RISING AT ABOUT
6 PERCENT ANNUALLY, COMPARED WITH 12 PERCENT IN 1974.
UNQUOTE. KISSINGER
SECRET
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidèntial Library
6f
DIPARTMENT OF STATE
Department NO0541 of State
JUNO
AMERICA
TELEGRAM
PAGESTATES OF
STATE 267996
61
ORIGIN NODS-00
INFO OCT-01 IS0-00 /301 R
COPY 8 OF 15 COPIES
DRAFTED BY E:WOROGERS: CJS
APPROVED BY E:WOROGERS
683.8
H.H.: RHORMATS
5/5:0-AHOTTO
022321
0 300231Z OCT 76 ZFF4
for
FM SECSTATE WASHOC
TO AMENBASSY TEMRAN NIACT IMMEDIATE
in
$ E C R R E 7 STATE 267996
5
NODIS
EYES ONLY FOR THE AMBASSADOR
Pres. Ford Shah
E.O. 11652: XGDS
TAGS:PFOR, ENRG, IR
SUBJECT: LETTER FROM PRESIDENT FORD TO HIS IMPERIAL
MAJESTY MOHANMAD REZA PAHLAVI:
1. AT THE EARLIEST APPROPRIATE TIME, AND IN ANY EVENT,
NO LATER THAN COB MONDAY, NOVEMBER 1, PLEASE DELIVER THE
FOLLOWING PERSONAL MESSAGE FROM PRESIDENT FORD TO HIS
IMPERIAL MAJESTY, MOHAMMAD REZA PAHLAVI:
2. BEGIN TEXT. YOUR IMPERIAL MAJESTY: YOUR DECISION NOT
TO INSIST UPON AN OIL PRICE INCREASE AT THE BALI OPEC
MEETING IN MAY WAS AN ACT OF STATESMANSHIP WHICH HAS
IMPORTANT IN DETERMINING THE OUTCOME OF THAT MEETING,
AVOIDANCE OF AN OIL PRICE INCREASE IS OF SUCH GREAT
IMPORTANCE TO TriE MAINTENANCE OF THE GLOBAL ECONOMIC
RECOVERY NON UNDERWAY THAT I AM WRITING TO REQUEST YOUR
CONTINUED CONSTRUCTIVE LEADERSHIP IN. ORDER TO PREVENT
SUCH AN INCREASE.
SECRET
FORD
02:8 W 08 100 01
&
DECLASSIFIED
GERALD
LIBRARY
E.O. 12958, SEC. 3.5
STATE DEPT, GUIDELINES, state Review 59/16/03
BY Cab
NARS DATE 3/5/04
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETAR
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
DIPARTMENT
OF
STATE
Department of State
ORIINA
SECRET
TELEGRAM
STATES
OF
PAGE 02
STATE 267996
3, I HAVE BEEN KEPT FULLY INFORMED OF YOUR CONCERN EARLIER
THIS YEAR THAT DECREASED OIL EXPORTS WOULD SERIOUSLY AFFECT
IRAN'S INTERNAL ECONOMIC DEVELOPMENT AND ITS ABILITY TO
FULFILL ITS RULE IN THE REGION. I HAVE CAREFULLY NOTED,
THEREFORE, THAT THE INCREASED ECONOMIC ACTIVITY
ASSOCIATED WITH RECOVERY IN A NUMBER OF DIL-IMPORTING
COUNTRIES IS REDUCING THE DIFFICULTIES WHICH YOU HAD
ANTICIPATED IN FINANCING IRANIS DEVELOPMENT AND DEFENSE
PLANS. I An TOLD ThAT IN THE LAST FOUR: MONTHS IRANIAN
CRUDE PRODUCTION HAS AVERAGED NEARLY SIX MILLION BARRELS
A DAY.
1. IT NOW APPEARS LIKELY THAT THE OPEC COUNTRIES WILL
EARN $125 BILLION THIS YEAR FROM THEIR OIL EXPORTS,
ABOUT 20 SMORE THAN IN 1975 AND MORE THAN 408% MORE THAN
THEY EARNED IN 1973 ON A SIMILAR VOLUME OF OIL EXPORTS.
IN CONTRAST. OUR MOST CAREFUL ANALYSIS OF ThE DOLLAR
PRICES OF EXPORTS FROM THE MAJOR INDUSTHIALIZED
COUNTRIES TO THE CIL PRODUCERS INDICATES THAT THESE
PRICES HAVE RISEN BY ONLY 30% SINCE 1973, AND ONLY
4 ZOVER THE PAST YEAR. PRICES FOR OUR LARGEST EXPORT --
GRAIN .... HAVE ACTUALLY FALLEN; WHEAT PRICES AVERAGED
315g PER TON IN THE FIRST HALF OF THIS YEAR, COMPARED
TO $200 PER TON IN 1974,
5. THE PROGRESS OF INDUSTRIALIZED COUNTRIES IN CON-
TROLLING INFLATION THROUGH MAJOR POLICY ACTIONS HAS BEEN
DRAMATIC, CONSIDERING ALL CIRCUMSTANCES, HITH THE AVERAGE
RATE OF INFLATION FOR MAJOR COUNTRIES NOW STANDING AT
HALF THE 1974 RATE. IN THE UNITED STATES PRICES ARE
RISING AT ABOUT 6 ANNUALLY, COMPARED WITH 12 IN 1974.
IT IS LIKEWISE ENCOURAGING THAT CERTAIN OIL-IMPORTING
DEVELOPING COUNTRIES HAVE BEGUN TO NARROW THEIR CURRENT
ACCOUNT DEFICITS IN 1976 AS A RESULT OF REDUCED
INFLATION, RISING EXPORTS AND IMPROVED TERMS OF TRADE.
HONEVER, THE BALANCE OF PAYMENTS SITUATION OF MANY.
COUNTRIES REMAINS CRITICAL, WHILE THAT OF LESS
FORTUNATE ENERGY DEFICIENT DEVELOPING COUNTRIES IS TRULY
DESPERATE. MANY COUNTRIES HAVE IN FACT VIRTUALLY
REACHED THE END OF THEIR ABILITY TO BORROW.
SECRET
NOT TO BE REPRODUCED WITHO.UT THE AUTHORIZATION OF THE EXECUTIVE SECRETAR
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
DEPARTMENT OF STaTe
Department of State
CANTED
AMERICA
TELEGRAM
STATES OF
SECRET
PAGE 23
STATE 267996
6. MY OFEP CONCERN, WHICH I BRING TO YOUR ATTENTION IN
THE SPIRIT OF OUR CLOSE RELATIONSHIP, IS THAT THE
FAVORABLE TRENDS TOWARD ECONOMIC RECOVERY WILL BE
REVERSED HY THE NEGATIVE INFLATIONARY AND BALANCE OF
PAYMENTS EFFECTS OF 1 NEW INCREASE IN ThE PRICE OF OIL.
SEVERAL IMPORTANT INDUSTRIALIZED COUNTRIES WHICH ARE
EXPERIENCING ECONOMIC DIFFICULTIES AND THE ATTENDANT
DANGER OF POLITICAL INSTABILITY WOULD ENCOUNTER STILL
MORE SEVERE ECONOMIC PROBLEMS IF FACED NEXT YEAR WITH
A HEW OIL PRICE INCREASE, SIMILARLY, THE ENERGY
DEFICIENT DEVELOPING MATIONS WOULD SUFFER ADDITIONAL
DAMAGE TO THEIR PROSPECTS FOR ECONOMIC GROWTH AND A
FURTHER EROSION OF THEIR ALREADY WEAK BORROWING ABILITY.
THIS WOULD ADD MAJOR NEW STRAINS TO THE INTERNATIONAL
SECRET
FINANCIAL SYSTEM AND INTENSIFY PRESSURE ON GOTH
INDUSTRIALIZED AND IL-PRODUCING NATIONS TO PROVIDE
BALANCE OF PAYMENTS SUPPORT, THUS, THE FRAGILE AND
UNEVEN NATURE OF THE GLOBAL ECONOMIC RECOVERY REQUIRES
THAT RESPONSIBLE NATIONS AVOID ACTION WHICH WOULD ENDANGER
IT.
7, SECRETARY KISSINGER REPORTED FULLY TO ME UN HIS TALKS
"ITH YOU LAST AUGUST, AND NOTED YOUR CONCERN ABOUT THE
NEED TO MAINTAIN CLOSE COOPERATION BETWEEN OUR TWO
COUNTRIES DESPITE OPPOSITION IN CONGRESS AND OTHER
CIRCLES. AS THE SECRETARY TOLD YOU, THIS ADMINISTRATION
IS DETERMINED TO CONTINUE TO ASSIST YOUR NATION IN
DEVELOPING ITS MILITARY ESTABLISHMENT AND MEETING ITS
GOALS FOR ECONOMIC DEVELOPMENT AND TO COOPERATE WITH
IRAN IN SEEKING SOLUTIONS TO MAJOR REGIONAL AND WORLD-
WIDE ECONOMIC AND POLITICAL PROBLEMS. i AM SURE YOU
HAVE BEEN FULLY INFORMED OF THE ADMINISTRATION'S
SUCCESSFUL RESISTANCE TO CONGRESSIONAL ATTEMPTS TO
LOCK THE SALE OF F-16 AIRCRAFT AND OTHER MILITARY
EQUIPMENT TO IRAN, THE STRUGGLES WITH CERTAIN SEGMENTS
OF AMERICAN OPINION CN THIS SUBJECT HAS BY NO MEANS BEEN
MON, HWOEVER, AND I FEAR THAT THERE WILL BE FURTHER
AND PERHAPS GREATER PRESSURES NEXT YEAR. BY WORKING
TOGETHER, WE CAN OVERCOME THESE PRESSURES AND SOLIDIFY
SECRET
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETAR
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
OF
STATE
Department of State
LINE
AMERICA
TELEGRAM
SECRET
STATES
OF
PAGE 04
STATE 267996
THE CLOSE RELATIONSHIP BETWEEN OUR TWO COUNTRIES.
HOWEVER, IRANIAN SUPPORT FOR AN OPEC DECISION TO INCREASE
THE PRICE OF OIL AT THIS TIME WOULD PLAY DIRECTLY INTO
TriE HANDS OF POSE WFO HAVE BEEN ATTACKING OUR
RELATIONSHIP,
8. THE DETERMINATION TO STRENGTHEN THE COOPERATION
BETWEEN IMPORTANT PRODUCING AND CONSUMING NATIONS,
WHICH YOU AND I SHARE, 1S NOT UNIVERSAL. AND YET THIS
COOPERATION, AND THAT BETWEEN THE DEVELOPING AND
DEVELOPED WORLDS, IS A KEY ELEMENT IN THE PURSUIT OF
THE GLOBAL POLITICAL AND ECONOMIC STABILITY WHICH WILL
ALLON ALL NATIONS TO ACHIEVE BETTER LIVES FOR THEIR
PEOPLES. I BELIEVE THAT FURTHER PROGRESS IN A NUMBER
OF AREAS OF THE NORTH SOUTH RELATIONSHIP, INCLUDING THE
OFFICIAL DEVELOPMENT ASSISTANCE MADE AVAILABLE TO THE
DEVELOPING WORLD, SHOULD BE POSSIBLE IN THE COMING
MONTHS. YOUR RESISTANCE TO A FURTHER INCREASE IN THE
PRICE OF OIL COULD BE A SIGNIFICANT INFLUENCE IN
RESTRAINING THE GROWTH OF PRESSURES WHICH THREATEN TO
DIVERT US FROM THE PATH OF POSITIVE ACHIEVEMENT IN THIS
IMPORTANT AREA.
SECRET
?. GIVEN THIS SITUATION, I BELIEVE THAT THE OUTCOME
OF THE DECEMBER GPEC MEETING WILL HAVE FAR REACHING
COMONIC AND POLITICAL CONSEQUENCES. YOUR IMPERIAL
AJESTYIS PERSONAL STATURE AND IRANIS POSITION OF
THTER ATTONAL LEADERSHIP PROVIDE AN OPPORTUNITY FOR
A HISTORICALLY IMPORTANT CONTRIBUTION TO POLITICAL
STABILITY, ECONOMIC PROSPERITY AND COOPERATION BENEFICIAL
TO IRAN AND TO ALL NATIONS. I THEREFORE URGE YOUR
IMPERIAL MAJESTY TO GIVE THESE CONCERNS SERIOUS AND
POSITIVE CONSIDERATION IN MAKING YOUR DECISION ON THIS
MATTER. SINCERELY, GERALD R. FORD END TEXT.
10. THE ABOVE LETTER SHOULD BE DATED OCTOBER 29, 1975.
KISSINGER
SECRET
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETA
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential. Library
O.
5,
John
Delivered from Emb
of tran 2:20pm, 11/6/26 Sal,
6B
IMPERIAL EMBASSY OF IRAN
November 5, 1976
The Ambassador
Dear Mr. President
I have the honour and the privilege, Mr.
President, to forward to you the enclosed letter
dated November 1, 1976 which I have just
received from His Imperial Majesty the Shahanshah
Aryamehr in Tehran. His Majesty's letter is in
response to your own of October 29, 1976 and deals
with oil and other matters of mutual interest to our
two nations.
With every assurance of my enduring respect
and high personal regard. God Bless 1003 Sir
vary Huly yours
as Ever
aulebi Jebedi
The President of the United States of America
The White House
Washington, D.C. 20500
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
bc.
1st November, 1976.
Dear Mr. President,
I thank you for your letter of 29th October 1976 containing your views on
various questions of mutual interest.
As you yourself, Mr. President, are aware, Iran did not insist on an oil
price increase at the Bali OPEC meeting in May, despite the fact that many members
of the Organization had proved that the oil exporting countries had lost a great deal
of their purchasing power. This decrease in our purchasing power has for some time
now been no less than 40 percent and that from a rapidly depleting finite product. Our
hope in Bali was that the world would recover and, in the meantime, that the
Paris Conference between North and South would lead to certain meaningful developments
in the interest of all.
I would like to reaffirm the fact that Iran has all along advocated two
fundamental principles with regard to the energy question. Firstly, that if oil is sold
cheaply, no alternative source of energy will be developed and the world dependence on
the rapidly depleting supplies of oil will continue to increase. As I have repeatedly
stressed in the past, this vital product must be preserved for more noble purposes such
as the production of petrochemicals including fertlizers and numerous other beneficial
derivatives rather than for heating, lighting and power. Secondly, we have proposed
that the solution of the world's energy problem lies in the implementation of effective
programmes for the development of alternative sources of energy and oil conservation.
Such a development and conservation cannot take place unless the price of oil is adjusted
to the level of that required to develop an alternative source of energy. In addition, this
price will have to be protected against imported inflation through indexation or linking the
price of oil to that of commodities and services imported by the developing countries.
With regard to your reference, Mr. President, to the progress achieved by the
industrialized countries in controlling inflation, I must point out that this may be the
case with the United States of America, the Federal Republic of Germany and Japan. On
the other hand, we know that many of the economies of the developed countries of the
world are sick and in a precarious state. We are purchasing commodities also from the
DECLASSIFIED
E.O. 12958, Sec. 3.5
State Dept. Guidelines state Review 9/16/03
By
hb
, NARA, Date 3/5/04
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
- 2 -
United Kingdom, France and Italy and we find that their inflation is running very
high sometimes even at the rate of more than 20 percent. I realize that their balance
of payments situation remains critical, but this certainly does not justify our committing
suicide by paying for their failure or inability to put their house in order by succeeding
in making the necessary adjustments in their economy through domestic measures.
The United States of America two years ago introduced an energy independence
programme to be achieved by 1980. In fact since that time, the dependence of the United
States on imported oil has increased to 45 percent and in 1976 alone the imports of oil
into your country are expected to rise by nearly 20 percent. Concerning Iran's position,
I feel constrained to say that not only has our purchasing power been eroded by 40 percent
but we also experienced a sharper decline in our oil exports in 1975 and in early 1976.
Furthermore, though the industrialized countries have been making efforts to reduce
inflation, these measures have been only partially successful in relation to domestic
prices while their export prices have continued to rise as rapidly as in the past. In this
respect, my country has in some cases, especially with regard to the United States,
been purchasing items in 1976 at prices 400 percent higher than those that prevailed in
1973. Thus our treasury is feeling a much greater loss of revenues in real terms. As fe
your reference to the price of grain, I would like to draw your attention, Mr. President,
to the fact that unlike petroleum, wheat is a renewable commodity and the factors
determining the price of these items are quite different. Moreover, the recent decline
in world wheat prices was due to the bumper crops in the United States, the Soviet Union
and in many other countries including my own where this year we will not require to
purchase wheat from abroad.
You are no doubt fully aware, Mr. President, of my deep concern for the
need to maintain close cooperation between our two countries. However, if there
is any opposition in the Congress and in other circles to see Iran prosperous and
militarily strong, there are many other sources of supply to which we can turn. for our
life is not in their hands. If these circles are irresponsible then it is hopeless, but
should they be responsible, they will certainly regret their attitude to my country. Nothing
could provoke more reaction inus than this threatening tone from certain circles and their
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
-3-
paternalistic attitude.
As you will no doubt agree, Mr. President, Iran has always followed a
policy of restraint and moderation, but the incredible economic situation of some
Western countries is such that history will not forgive us should we deplete our
finite and most precious wealth just to allow these countries to continue their
politicizing and indecision. Nevertheless, you may rest assured, Mr. President,
that in the councils of OPEC, Iran has adopted one of the most moderate attitudes.
With best wishes and kindest regards,
Sincerely,
M.R.Pahlan
The Honourable
Gerald R. Ford,
President of the United States of America,
WASHINGTON, D.C.
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library, 7a a
Oshia
(Den is has orig)
(Norm at has egg)
Delivered from 6ml
of tran 11/6/76 2:20pm, Sal,
( c, sent to LSE
IMPERIAL EMBASSY OF IRAN
for HAR)
November 5, 1976
The Ambassador
Dear M. President
I have the honour and the privilege, Mr.
President, to forward to you the enclosed letter
dated November 1, 1976 which I have just
received from His Imperial Majesty the Shahanshah
Aryamehr in Tehran. His Majesty's letter is in
response to your own of October 29, 1976 and deals
with oil and other matters of mutual interest to our
two nations.
With every assurance of my enduring respect
and high personal regard. God Bless yon sir
vary July yours
as Ever
The President of the United States of America
The White House
Washington, D.C. 20500
GERALD
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
1st November, 1976.
Dear Mr. President,
I thank you for your letter of 29th October 1976 containing your views on
various questions of mutual interest.
As you yourself, Mr. President, are aware, Iran did not insist on an oil
price increase at the Bali OPEC meeting in May, despite the fact that many members
of the Organization had proved that the oil exporting countries had lost a great deal
of their purchasing power. This decrease in our purchasing power has for some time
now been no less than 40 percent and that from a rapidly depleting finite product. Our
hope in Bali was that the world would recover and, in the meantime, that the
Paris Conference between North and South would lead to certain meaningful developments
in the interest of all.
I would like to reaffirm the fact that Iran has all along advocated two
fundamental principles with regard to the energy question. Firstly, that if oil is sold
cheaply, no alternative source of energy will be developed and the world dependence on
the rapidly depleting supplies of oil will continue to increase. As I have repeatedly
stressed in the past, this vital product must be preserved for more noble purposes such
as the production of petrochemicals including fertlizers and numerous other beneficial
derivatives rather than for heating, lighting and power. Secondly, we have proposed
that the solution of the world's energy problem lies in the implementation of effective
programmes for the development of alternative sources of energy and oil conservation.
Such a development and conservation cannot take place unless the price of oil is adjusted
to the level of that required to develop an alternative source of energy. In addition, this
price will have to be protected against imported inflation through indexation or linking the
price of oil to that of commodities and services imported by the developing countries.
With regard to your reference, Mr. President, to the progress achieved by the
industrialized countries in controlling inflation, I must point out that this may be the
case with the United States of America, the Federal Republic of Germany and Japan. On
the other hand, we know that many of the economies of the developed countries of the
world are sick and in a precarious state. We are purchasing commodities also from the
DECLASSIFIED
E.O. 12958, Sec. 3.5
state
De
State Dept. Guidelines
9/16/03
By
the
& NARA, Date 3/5/04
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
United Kingdom, France and Italy and we find that their inflation is running very
high sometimes even at the rate of more than 20 percent. I realize that their balance
of payments situation remains critical, but this certainly does not justify our committing
suicide by paying for their failure or inability to put their house in order by succeeding
in making the necessary adjustments in their economy through domestic measures.
The United States of America two years ago introduced an energy independence
programme to be achieved by 1980. In fact since that time, the dependence of the United
States on imported oil has increased to 45 percent and in 1976 alone the imports of oil
into your country are expected to rise by nearly 20 percent. Concerning Iran's position,
I feel constrained to say that not only has our purchasing power been eroded by 40 percent.
but we also experienced a sharper decline in our oil exports in 1975 and in early 1976.
Furthermore, though the industrialized countries have been making efforts to reduce
inflation, these measures have been only partially successful in relation to domestic
prices while their export prices have continued to rise as rapidly as in the past. In this
respect, my country has in some cases, especially with regard to the United States,
been purchasing items in 1976 at prices 400 percent higher than those that prevailed in
1973. Thus our treasury is feeling a much greater loss of revenues in real terms. As for
your reference to the price of grain, I would like to draw your attention, Mr. President,
to the fact that unlike petroleum, wheat is a renewable commodity and the factors
determining the price of these items are quite different. Moreover, the recent decline
in world wheat prices was due to the bumper crops in the United States, the Soviet Union
and in many other countries including my own where this year we will not require to
purchase wheat from abroad.
You are no doubt fully aware, Mr. President, of my deep concern for the
need to maintain close cooperation between our two countries. However, if there
is any opposition in the Congress and in other circles to see Iran prosperous and
militarily strong, there are many other sources of supply to which we can turn, for our
life is not in their hands.
If these circles are irresponsible then it is hopeless, but
should they be responsible, they will certainly regret their attitude to my country. Nothing
could provoke more reaction in us than this threatening tone from certain circles and their
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
-3-
paternalistic attitude.
As you will no doubt agree, Mr. President, Iran has always followed a
policy of restraint and moderation, but the incredible economic situation of some
Western countries is such that history will not forgive us should we deplete our
finite and most precious wealth just to allow these countries to continue their
politicizing and indecision. Nevertheless, you may rest assured, Mr. President,
that in the councils of OPEC, Iran has adopted one of the most moderate attitudes.
With best wishes and kindest regards,
Sincerely,
M.R.Pahlair
The Honourable
Gerald R. Ford,
President of the United States of America,
WASHINGTON, D.C.
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
8a
Delivered from Embas
of from 2:20pm, 11/6/76 Sat,
IMPERIAL EMBASSY OF IRAN
November 5, 1976
The Ambassador
Dear Mr. President
I have the honour and the privilege, Mr.
President, to forward to you the enclosed letter
dated November 1, 1976 which I have just
received from His Imperial Majesty the Shahanshah
Aryamehr in Tehran. His Majesty's letter is in
response to your own of October 29, 1976 and deals
with oil and other matters of mutual interest to our
two nations.
With every assurance of my enduring respect
and high personal regard. God Bless yon sir
vary July yours
as Ever
The President of the United States of America
The White House
Washington, D. C. 20500
FORD
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
8B
1st November, 1976.
Dear Mr. President,
I thank you for your letter of 29th October 1976 containing your views on
various questions of mutual interest.
As you yourself, Mr. President, are aware, Iran did not insist on an oil
price increase at the Bali OPEC meeting in May, despite the fact that many members
of the Organization had proved that the oil exporting countries had lost a great deal
of their purchasing power. This decrease in our purchasing power has for some time
now been no less than 40 percent and that from a rapidly depleting finite product. Our
hope in Bali was that the world would recover and, in the meantime, that the
Paris Conference between North and South would lead to certain meaningful developments
in the interest of all.
I would like to reaffirm the fact that Iran has all along advocated two
fundamental principles with regard to the energy question. Firstly, that if oil is sold
cheaply, no alternative source of energy will be developed and the world dependence on
the rapidly depleting supplies of oil will continue to increase. As I have repeatedly
stressed in the past, this vital product must be preserved for more noble purposes such
as the production of petrochemicals including fertlizers and numerous other beneficial
derivatives rather than for heating, lighting and power. Secondly, we have proposed
that the solution of the world's energy problem lies in the implementation of effective
programmes for the development of alternative sources of energy and oil conservation.
Such a development and conservation cannot take place unless the price of oil is adjusted
to the level of that required to develop an alternative source of energy. In addition, this
price will have to be protected against imported inflation through indexation or linking the
price of oil to that of commodities and services imported by the developing countries.
With regard to your reference, Mr. President, to the progress achieved by the
industrialized countries in controlling inflation, I must point out that this may be the
case with the United States of America, the Federal Republic of Germany and Japan. On
the other hand, we know that many of the economies of the developed countries of the
world are sick and in a precarious state. We are purchasing commodities also from the
DECLASSIFIED
E.O. 12958, Sec. 3.5
State Dept. Guidelines
state Review 8/16/03
By
labr
, NARA, Date 3/5/04
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
- 2 -
United Kingdom, France and Italy and we find that their inflation is running very
high sometimes even at the rate of more than 20 percent. I realize that their balance
of payments situation remains critical, but this certainly does not justify our committing
suicide by paying for their failure or inability to put their house in order by succeeding
in making the necessary adjustments in their economy through domestic measures.
The United States of America two years ago introduced an energy independence
programme to be achieved by 1980. In fact since that time, the dependence of the United
States on imported oil has increased to 45 percent and in 1976 alone the imports of oil
into your country are expected to rise by nearly 20 percent. Concerning Iran's position,
I feel constrained to say that not only has our purchasing power been eroded by 40 percent,
but we also experienced a sharper decline in our oil exports in 1975 and in early 1976.
Furthermore, though the industrialized countries have been making efforts to reduce
inflation, these measures have been only partially successful in relation to domestic
prices while their export prices have continued to rise as rapidly as in the past. In this
respect, my country has in some cases, especially with regard to the United States,
been purchasing items in 1976 at prices 400 percent higher than those that prevailed in
1973. Thus our treasury is feeling a much greater loss of revenues in real terms. As for
your reference to the price of grain, I would like to draw your attention, Mr. President,
to the fact that unlike petroleum, wheat is a renewable commodity and the factors
determining the price of these items are quite different. Moreover, the recent decline
in world wheat prices was due to the bumper crops in the United States, the Soviet Union
and in many other countries including my own where this year we will not require to
purchase wheat from abroad.
You are no doubt fully aware, Mr. President, of my deep concern for the
need to maintain close cooperation between our two countries. However, if there
is any opposition in the Congress and in other circles to see Iran prosperous and
militarily strong, there are many other sources of supply to which we can turn, for our
life is not in their hands.
If these circles are irresponsible then it is hopeless, but
should they be responsible, they will certainly regret their attitude to my country. Nothing
could provoke more reaction inus than this threatening tone from certain circles and their
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
-3-
paternalistic attitude.
As you will no doubt agree, Mr. President, Iran has always followed a
policy of restraint and moderation, but the incredible economic situation of some
Western countries is such that history will not forgive us should we deplete our
finite and most precious wealth just to allow these countries to continue their
politicizing and indecision. Nevertheless, you may rest assured, Mr. President,
that in the councils of OPEC, Iran has adopted one of the most moderate attitudes.
With best wishes and kindest regards,
Sincerely,
M.R.Pahlair
The Honourable
Gerald R. Ford,
President of the United States of America,
WASHINGTON, D.C.
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
9A
January 7, 1977
Your Imporial Majesties:
Mrs. Ford, the children and I wish to thank you
for your kindness in remembering us at Christmas.
Your thoughtful gifts added greatly to our enjoyment
of the Holiday Season.
Mrs. Ford asks that I convey as well her apprecia-
tion of your gracious expression of congratulations
through Ambassador Zahedi for the henorary degree
that was bestowed on her.
With our warmest personal regards and best wishes.
Sincerely,
/s/ Gerald R. Ford
Their Imperial Majesties
The Shahanshah and Shahbanou of Iran
Tehras
RCM:ms:1/6/77
FORD
&
GERALD
LIBRARY
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
9B
January 7, 1977
Dear Mr. Ambassador:
You were so very kind to send to Mrs. Ford and me,
and to the children this Christmas such levely gifts.
We have enjoyed them through the Holiday Season.
It was particularly kind of you to have them and the
gifts from Their Imperial Majesties delivered to us
in Vail. I have expressed my appreciation in a separate
letter to the Shahanshah and Shahbanou, which I would
appreciate your sending on to Their Majesties.
With warmest best wishes from all of us.
Sincerely,
/s/ Gerald R. Ford
His Excellency
Ardeshir Zahedi
Ambassador of Iran
Imporial Embassy of Iran
Washington, D. c.
FORD
A
GERALD
LIBRARY
47
RCM:ms:1/6/77
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
7C
IMPERIAL EMBASSY OF IRAN
December 21, 1976
The Ambassador
Dear Resedent And MRS Ford
I have the honour and the privilege to convey
to you these Christmas gifts which have been sent
by Their Imperial Majesties the Shahanshah and
Shahbanou from Tehran.
May I also be permitted to take this opportunity
to convey to you my sincerest good wishes for your
happiness and well-being not only at Christmas time
but throughout the coming year.
This Morning when Thad The Privilege He
Your beautiful lovely Very lady The Lady of U.SA
me Totalk again To TO his Con maguty TO you by phone. mr, st Mandent and asked
Their congradulation on Honey Digree The Loubl MAS Ford
and Their many Menry christmes To
The President of the United States Ford, Family.
of America and Mrs. Ford
Cod be with you
The White House
Very asever
Washington, D.C.
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
IMPERIAL EMBASSY OF IRAN
December 22, 1976
The Ambassador
my Dears It good Brent to talk to
was so you by telephone earlier
today and I really do appreciate your assistance with
these gifts.
I am now sending Mr. Nasser Sadeghi, a
member of the diplomatic staff of the Embassy, with
the items which we discussed. Eight boxes of the
caviar have been sent by Their Imperial Majesties
for President and Mrs. Ford. My covering letter is
also enclosed. In addition, I am sending two boxes
of chocolates and four of pistachios to them myself
as well as a Persian notepad for each of the children.
I also had a few things here for you and your family
for the holidays so thought you might enjoy having
them in Vail.
With my kindest regards and in the hope of
seeing you again soon after your return.
God GdBharyn Blessyn
andest very
Lt. General Brent Scowcroft
Assistant to the President for National Security Affairs
The Vail White House
Vail, Colorado