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March 4, 1975 - Ford, Kissinger, Iranian Finance Minister Hushang Ansari, Ambassador Ardeshir Zahedi
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1552976
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March 4, 1975 - Ford, Kissinger, Iranian Finance Minister Hushang Ansari, Ambassador Ardeshir Zahedi
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This file contains pan American airline
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Memoranda of Conversations (Nixon and Ford Administrations)
Ford Administration Memoranda of Conversations
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Iran
Aeronautics, Commercial
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Nuclear energy
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1975
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File scanned from the National Security Adviser's Memoranda of Conversation Collection at the Gerald R. Ford Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
SEGRET/NODIS/XGDS
MEMORANDUM OF CONVERSATION
PARTICIPANTS:
President Ford
Hushang Ansari, Minister of Economics
and Finance of Iran
Dr. Henry A. Kissinger, Secretary of
State and Assistant to the President
for National Security Affairs
Ardeshir Zahedi, Ambassador of Iran
Charles Robinson, Under Secretary
of State for Economic Affairs
Lt. General Brent Scowcroft, Deputy
Assistant to the President for
National Security Affairs
FORD
&
DATE & TIME:
Tuesday - March 4, 1975
12:00 noon
GERALD
LIBRARY
PLACE:
The Oval Office
President: It is a real pleasure to see you. Secretary Kissinger gave
me excellent reports of the work of the Commission. I want to compli-
ment you for coming forth with these results which are of benefit to
STATE SEPT. GUIDELINES state 3/11/04
both our countries.
Ansari: Thank you very much. I want to thank you not only for the
results of our meeting, but Dr. Kissinger has been most constructive
in encouraging the development of constructive efforts. It has really
NARA, DATE 5/13/04
been most heartening.
Kissinger: Minister Ansari described to me when I was in Tehran the
overall development program of Iran. By 1983 they hope to reach the
standard of living of Western Europe.
DECLARCIFIED
Ansari: We hope for a GNP of $193 billion by 1983 which would compare
favorably with Europe.
S.O.
CLASSIFIED BY Henry A. Kessings
/
EXEMPT FROM GENERAL DECLASSIFICATION
SECRET/NODIS/XGDS
SCHEDULE OF EXECUTIVE ORDER 11652
EXEMPTION CATEGORY 5B(3,1)
AUTOMATICALLY DECLASSIFIED ON Imp. to det.
SEGRET/NODIS/XGDS
2
President: What is the population of Iran?
Ansari: It will be about 42 million by 1983.
President: Is it expanding rapidly ?
Ansari: About three percent a year, but we have a planning program
and hope to reduce that.
Our development includes every form of economic development, social
reform and education.
Kissinger: Point Four was started in Iran in the '50s.
Zahedi: That's right. It began in one room. I was involved in that.
Ansari: Everything we have done has taken place in the last 12 years.
Forty-five years ago our total imports were $15 million. This year
they are $10 billion. Next year they will be $14. 5 billion.
President: Do you have the port facilities to handle this ?
Ansari: This is one of the pitfalls in our program. The demand for
food, housing and clothing has gone up drastically and our program is
not adequate. We have much work to do there. We have four major
ports. By 1983 they will have to handle 80 million tons, compared to
4 million now.
Kissinger: I reported to you, Mr. President, about the arrangement
for 500, 000 barrels of oil in exchange for probable military commodities
in a way that the price doesn't become obvious. Is that a fair statement ?
Ansari: Yes, indeed.
Kissinger: If you approve the idea, we will have jointly to work out a
complete program. It will require some subtlety. The benefit to Iran
would be increased liftings and they would keep the price in mind.
Among the other advantages to us is that of dealing with a country
which has not joined an embargo.
President: For which we are grateful. I approve.
FORD
&
SECRET/NODIS/XGDS
GERALD
LIBRARY
SEGRET/NODIS/XGDS
3
Ansari: We will sit down and work out a plan to submit to you and His
Imperial Majesty.
President: Perhaps for his visit.
Ansari: We think we are not exaggerating when we say our relations are
very close and we should give more meaning to that. When you are
working for peace in the Middle East we think we should cooperate to-
gether to turn the region into a bastion of peace.
President: If the foresight of the others was like yours, if we can divert
their energies from war to peace, we can make great progress. We
will do what we can with the peace negotiations and we appreciate His
Imperial Majesty's responsible role.
Kissinger: His Imperial Majesty is a world statesman.
President: Shultz has also said that. I am looking forward to our
meeting.
Ansari: Looking back on the Shah's outlook, I look back to the time
when I was Ambassador here. Like you when you were in Vietnam,
you need friends, and we want to strengthen our cooperation.
So far as Pan Am is concerned, we have had good talks and things are
proceeding. We want to have productive investment in accordance with
rules of each country. We want to consider it in a manner which would
be beneficial to Pan Am and to both of us.
Kissinger: We are operating in a manner and on a scale which will be
of great benefit to us both.
Zahedi: It is now with the CAB. We want to be helpful. Their problem
is that it is not a profitable investment -- they lost $80 million. They
blame it on the price of oil but we think it was management.
President: They have improved the management. They had very large
overhead. If economic conditions improve they should be able to move
rapidly to a profit.
Zahedi: We think they have made mistakes and still have too many high
priced Vice Presidents.
FORD
&
SECRET/NODIS/XGDS
GERALD
LIBRARY
SECRET/NODIS/XGDS
4
President: The CAB doesn't always do what I want, but I am hopeful.
Ansari: Our thinking is that if this is to be an example of our cooperation,
we should work to put Pan Am back on its feet. It should be a successful
example so the U.S. Government should do whatever is necessary and
we should, so it is a good example.
President: The CAB has been working on the route structure and they
have cut the overhead. They have dropped some unprofitable routes.
Zahedi: We signed yesterday for the sixth 747. We will probably exercise
our option for six more.
Ansari: One other subject is nuclear energy. We are willing to invest
about $8 billion and to invest in an enrichment plant. We would have to
insure the success of this effort by giving us access to this technology
and its gradual transfer to us. Dr. Kissinger recognizes this as a subject
which must be taken up and will be discussed with you.
President: I am not a technician, but the goodwill exists for a constructive
solution.
Kissinger: There are technical obstacles but we hope they can be worked
out.
President: The will exists.
Ansari: Thank you. We touched on relations with the European Community,
co-production issues
Kissinger: There is a problem of co-production costs. We will be in touch.
Zahedi: Yes. If this be the case, we may drop the proposal. What they
say is that the cost of parts two years from now might increase 500%.
Kissinger: The idea was they would produce the TOW missiles and the
Maverick. Last year I said we would approve it in principle. I didn't
know the prices, and it doesn't seem to make sense.
Robinson: We are investigating it. At the end, there would be a full
operating plant.
FORD
&
SEGRET/NODIS/XGDS
GERALD
LIBRARY
SECRET/NODIS/XGDS
5
Ansari: There seems to be a big difference in component costs. They
are more than the whole missile bought here.
FORD LIBRARY & GERALD
SECRET/NODIS/XGDS
N
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FORD
DECLASSIFIED
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES state view 3/11/04
LO. 12956, SEC. 3.5
BY ha
NARA DATE 5/13/04
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FORD LIBRARY is QERALD
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RALD GERALD ? FORD