EIGHTH CENTO MINISTERIAL COUNCIL SESSION TEHRAN, APRIL 28-30, 1960 U.S. POSITION ON THE TURKISH- IRANIAN RAILWAY LINK

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• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00269R000400060006-5
• Release Decision: RIFPUB
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• Document Page Count: 47
• Document Creation Date: December 14, 2016
• Document Release Date: April 7, 2003
• Sequence Number: 6
• Publication Date: April 21, 1960
• Content Type: PAPER

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EIGHTH CTO CONCCIF, SMRSIOU
Tehran, April_28-3C, 1960
U. S. Position on the Turkish-Iranian Pai71,1E5xJ0Jak
Position Paper
821212ated Position of Foreign Goveramentg:
D - 9/4
21, '2.96U
Executive Registry ;
1. Iran is not likely to raise this issue at the Ministerial Deeting;
houever, it will probably approve the Report of the Economic Committee to
the Cou!noil, which cont;Ans a Resolution on CommunIcations and Public Works
wormy; incorporating recommendations to the Council of the Rail link
joining Mus-Tatvan-Qutur-Khuy-Tabriz (Turkey-Iran)."
2. Turkey also probably will approve the Econcmic Committee's Ilemt
with its Resolution on Coymunications and PUblic Uorke, and may raise the
question of the status of the TnIrkish loan application to the Developamt
Loan RITA for the portion of the rail link fraR mus to Tatvan; in the lat-
tez case Turkey will egpress the v6ry positive hope that there will be an
early and favorable decision to 2Zte the reqposted loan
3. If the issue is raised, the three regional maker states and the
United Mingdom may be expected to ogpress hope that the United States will
contimue to explore actively the provisiwn of funds, e:ither on a grant or
loam basis, for the completion of the entire pro,?,f,!t iliclAding the section
between ra Tepe and Van.
Racca-laGELled U.S. Position:
_
1. The hcited States has concluded an agreement with Iran for the
provision of $1.9 million of the "Richaris Mission, Commitment" f*r nee on.
angimnring and construction of the SharafIghsneh-yara Tepa section. Thio
is ens:L.014g the Iranian Goverment to proceed with that portion vf the
rail link without further delay and progreas should be fairly rapid.
2. If it is neceseary to COE23Mt in the Comcil meting on the
status of the Turkish loan wcplication, the statement E,By be made that
DLF is dying toy priority to Ito consideration of the emgfteering report
with a vieu to an early decision.
3. Uith
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3. With respect to financing the balance of the joint project for
linking the railway systems of Turkey and Iran, as the United States has
been and is giving top priority to the Turkish loan application for the
Mus-Tatvan section, it is not prepared at this time to go further into the
question of financing the balance of the project.
FYI. At the Ministerial Council meting in Washington, October 7-99
1959, the United States Observer (the Secretary), in replying to a query
from the Iranian representative on this question, is recorded as having
made the following statement
?The Chairman said that since the Delegate of Iran had brought
this subject particularly to the attention of the United States
Government, he thought that he might assure him, as he was pleased
to assure his Prime Ministers that the loan application by Turkey
and Iran was a matter that the United States Government had under
very serious consideration although they could not as yet give a
definite answer.
END Fla
Discassiong
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Gr5n-TTEc7,71.
10,egaseicn:
Dieg hie vielt tho DM41)1e Yet Msock 19579
Mat a Z'e2 ,9 th* Proaidantvo E.1WirCrY, eggered aykt-brately
1511115, for
jt o yt:42t.ian tho waveoca Tark-Iranian ? link..
A 1?L;?.A.vey of the route bescen Ms in Tarim, cin In tiaz
eletacA in 1958 by cza ICA-ensnod firm: IrlitanpOyther cagop
whieh ito rowt isufflxittot% tt) the mo*or govarnmente
for gutfge The repert,, uhiab rfa93 s5rSttm. Em)ior to tho z.,1e9a1ustion
og thekiohinclle0Aia 'ehmi.e21 gcap,IbilAW. Eastward
estsbMehcA if tiYeletie eatimatoo 2revonne t7CCO
ceeq.-03a9 othorigise on4 ibalty mplab aworent.
Thciltort, tko Turkichor-22 C-ov,te, on V. S. ekAggeotionl
oiael 3Ama onSleationo ctith tho rgero 2MNp3?3tiigS a lean totaling
0T2E-c3vd_to.U? .84 nallblan to to eatit2tGA egtehange
COOt1.3 thia mjeeto,Th?D:se aysLic3tiono mire 6, COQP-CMgaI oval
`0.k-za amao tar $55 g1760.7Utmo
nao tko 1)12 etagg quo ail to E.:Jaws-CW.1%c? 2ind/Ing of
gC3Eliblanyo (36110.12,y in the og rozalmtien eg this
rv?r6lsirAk limp tto in? Cov-calpittri ag Rau aokal to
tho q5--Cathor re-gart a10,,i(mte Ito ead.knoien3. Ai
mavY-t.Y3 -J-aok -tho FOItQ tatoo9 railen. eel ite fiat-
12ge an ame 19 1959. It .nalo23r3.4m1 that tho traffic- eotIlice,:?'&9e
reLGsm-Cath ZA2ON f3=11-5t 2JIar.a 'n.at `e 'aiacarmie gazoibility
g>.? the oU Liak PV.AL"?D 4b.S.M3p
VIVN of t-4oeoecwelwienep V'Lsio tYba;, Souste-2,7 (rh.idetl, after
eo tation, wklb. gntotro-2 /44-tunel000 -ant a DO lam ger -:the ovcw-
c,alt Zink mot rooeiblo at irtn, tiEe 0 ItinSt
thOGiOgeaeibility eg t7,7o ezgacato (6.._z-'1Ciatvan in Ty ana
tv,',voin Irm) ehnold be GiMI.M.V.1
tao L6-oolb)1.1.1ty oz? U. S. finrimei aoci r,a ger aset.
,?,44ape 6111. yer.m 2.96lp tho170,,;o3Aility of old
for tke vc I? bo explerell.
-ningb1e_ata MN oat br t.2.(47 msee in,mggi-
etkentto alls a zmul.C-el n-fzeoarmaut ,)0 the e-amaaele gesoibi?ty g
the obovi tm, owmft. thr-agero .6sulwatad tha azYthar
og theso oegz-mte bPwelo. b\o- Sietp-neelons trith tj,a3 'PLoko an
D.-rM4.0'1 EaC3 at fte Ss:wt-bc;-r 1959 Le6,--,,we,C4=ittoo m.Boian the rke
,-Ts-o?cA re@eive suriyoy tz.-vk;O rudimel(leg. tgzat mach a
013- v2,a bo MainaGC3OZTFg "? ao tizvy mintiA.Reczt tho
eg the 1Mthoote 612t.sEMIta tothounth the,2 Eyn, recouroegg
thA_ to nregx-io tto GEgitItecoixig arLA ametrn?bion og
Viao SIGSZ 0 t o
To
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Two DeLeuw-Cather engineers were sent to Turkey to resurvey
the Mus-Tatvan section. Their completed report was received by the
DLF in February 19600 The DLF has made an initial review of this
reports which forms the basis of the new Turkish loan applications
and informal reports indicate that so far nothing derogatory has
been found. In additions there remain certain details related to
the form of application and to the process of granting the loan
which make it improbable that a DLF Board decision will be reached
an the application prior to the Ministerial Council meeting.
Drafted by: DEA - Mr. Kennedy
and NR - Mr. Walstrom
Cleared by: NR Mr. Wright
GTI - Mr. Hope
ICA - Mr. Ferris
DLF - Mr. Hutchinson
C - Mr. Achilles
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EIGHTH =TO MINISTERIAL COUNCIL SESSION
TEH D-9A
Apra 22? 1960
Tehran April 28-30 1960
U. S. Views on the Reeort of the Economic Committee
Position Pa2aE
Aue?.cinated Position of ForlIka Governments
_nee,
1. The member governments maybe expected to approve the Repoet,of
the Eeonomid Comxaittee, together with the Resolutions it recoemends to
eae eouncil.
2, The regional member states may raise in connection with the
Ckeencil's consideration of the Report one or more of the follaaing epecifie
ieeuee2
(a) Use of microwave or tropospheric ocatter in CERT?
Telecammunications Project - (see position paper U. S. Position
CC..11.1211.02:91.167
ae IMMO Telecommaie-Iffens tE21E2t)
,o
(b) Turkish-Iranian Railway - (see po cn paer
eitie U. So
------ , ----
Pcsition eli?TaMR7Iranimitadlway L1n4 slid
(c) Financing of Joint Projects - (see pcsition paper U. S.
?esition on Finencine of Joint Projects).
e
nded U. S. Position
I. The 1342R2n of the Economic Committee and the Resolutions it recom-
fe, o the Council are acceptable. In this connection the United States
oe-ef4eme the views expreeeed on the Report and its Reoolutioes by the
U. S. !apyeeentative in the Eighth Meeting of the Econemic Coe.mittee,9 as
eet Zoeth in the Semmary Records of that meeting.
The ottached utabaments which has been prepared in pert to counter
,eire..-icee of diecouragement and dissatisfaction vade by the regional
-Le-1,e- ? es eegarde progress in CENTO economic affairs and the provision
eZILF. aesistancel, nay be ased during the Counei:Us consideration of the
fe-e.:o of the Economic Oormittee.
Discussion
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Discussion
The work of the Economic Committee aims at promoting regional
economic cooperation among the CENTO states to supplement their indi-
vidual development programs. The slow progress achieved has been much
criticized by the regional states, who feel this work should be supported
more liberally by the United States and the United Kingdom. In the
recent Economic Committee meeting, the regional states expressed consider-
able discouragement and dissatisfaction, particularly as regards the U. So
action in unilaterally reconsidering the joint agreement to use microwave
in CENTO 's telecommunications project, and as regards the problem of
financing joint projects.
U. S. commitments to CENTO multilateral projects (1957 to the present)
amount to $22.67 million exclusive of a modest sum for technical assist-.
ance. The United Kingdom is now contributing Li 850,000 per year to various
aspects of the CENTO economic program. The total British commitment to
date amounts to about $9 million. The regional states have tended to
seek CENTO endorsement for projects which very often are (1) national in
charEcter, having little if any true regional significance; or (2) of a
regional nature but with doubtful economic justification.
The work of the Economic Committee may be divided into four principal
categories, viz:
1. Joint Development Projects
Eleven so-called "joint projects," i.e., projects providing benefits
to more than one state, have now received Economic Committee endorsement
in pA,neiple. Capital financing for these projects, however, has been
ve2:7 :ilaited and progress in their implementation has been slow,
The status of the various approved projects is given below:
(a) Turk-Iran (Shivelan-Rezayeh) and Turk-Iraql (Cizre-Zakho)
Road Links
Ambassador Richards, when visiting the Middle East in
kiarcb 157 as the President's Special Envoy, offered the Government of
Tue.key' approximately $2.2 million for the survey of these road links and the
purchose of road-building equipment with which to begin construction worko
An ICA-engaged
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An ICA-engaged Bureau of Public Roads Survey Team submitted a report in
early 1958 on these links and indicated total foreign exchange costs
would approximate $35 million.
Of the total amount of United States-granted purchasing
authority under the Richards commitment, $1,3000000 has been allocated
to the Turkish portion of the Turk-Iranian road link; two-thirds of the
equipneet for this link has been received or is enroute, and the rest
is on order, The remaining $800,000 has been made available in the
form of equipment to the Turkish portion of the Turk-Iraqi road link.
No U. S. funding has been provided for the Iranian portion of
the YcEgft link, but Iran has received part of the equipmeat offered by
the Seated Kingdom under a technical assistance grant of 12 10000000
The Iraqi portion was discontinued as a CENT? project, following Iraq's
witheraval from the Baghdad Pact.
(b) Turk-Iran Railway Link
(See separate position paper U, S. View* on the Turkish/ranien Railway Link.)
(c) Intra-Pact Clpitals Telecommunications Project
(See separate position paper entitled, U. S. Views on CENr0
Telecemmunications Project.)
(d)
London-Pact Capitals High Frequenc Telecommunications Pro eat
The United Kingdom has committed a total of L 6500000 to assist
fier, etAs project. Survey work has been completed and it is hoped that
el!?e 'che equipment needed for the first stage of this project will be
eleidened eo the sites to enable operation of the system by September 19600
(e) Rail Link Between Pakistan (Zahidan Junction) and Iran (Kashan)
Although the Annexes to Resolution EC/8/D18 indicate that the
Unf.ted States is considering provision of assistance to Iran for a survey
of the Zahidan-Kerman section, no financing for either survey or engineer-
ing purposes is presently available and the project is likely to have low
priorilnyc
.(f) KarachieLasbella-Quetta-Zehidan-Kerman (Pakistan-Iran) Road Link
No U. S. or U. K. funding is presently available for this project.
The Government of Iran has indicated to the Committee on Public Works that
it requires
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it requires requires financial assistance amounting to million for purchase
of tuo complete units of mechanical equipment for improvement, mainten-
ance and construction of this road.
The Government of Pakistan has estimated it requires
$4?600,000 for foreign exchange costs of the Pakistani portion of this
roa(f link. Pakistan has also allocated 35 million in rupees to this
projacto
These estimates are undoubtedly far below the likely foreign
exdiange requirements.
(g) Karachi-Chahbahar-Khorramehahr (Pakistan-Iran) Coastal Road
The United Kingdom has agreed to provide Pakistan up to
200,000 worth of equipment for this road. Pakistan has requested an
additional 1.1 million to bring the construction of this road up to
CENi0 etandards. The United States has already stated that it is not
in F position to provide financial assistance to this project.
(h) Cizre-Shivelan Road Link (within Turkez1
Accepted at the Ankara Economic Committee meeting, September 1-4,
1955. No financing presently available.
(i)_Devell_ms_ltofth....tofTrabzon(Turke),
Accepted at the Ankara Economic Committee meeting?September 14,
1955'. Estimated cost is 35000000. The United Kingdom has agreed to sup-
pY.y equipment worth L 60,9000.
(j) Development of Sea ort of Iskenderun (Turku.).
Accepted at the Ankara Economic Committee meeting, September 1-49
1955. No funding available. Turkey estimates the cost to be 310 million.
(k) Civil Aviation Navigation Aids
U. S. civil aviation experts are examining this project but U. S.
bupT.uro All depend an: (1) willingness regional members make available
lucz3 c-Le?rency requirements; (2) appropriation of the funds requested
(32 million) in the FY 1961 MSP now before Congress; and (3) resolution
a ''6he p:I.actical difficulties of regional members providing enough local
',;(7t\TF1Tar;f11:1.-,
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skilled personnel for both this project and the telecommunications
network. The regional delegates to the Tehran Economic Committee meet-
ings said their governments were prepared to provide local currency,
(1) Port of Ormara (not endorsed by the Economic Committee.)
In addition to the foregoing endorsed projects, Pakistan
is energetically seeking Economic Committee endorsement of the Seaport
of Ormara as a "joint project" and Iran is hopeful as regards a project
for development of a Persian Gulf port as an alternative to Abadan,
2. Technical Assistance
Technical assistance under the aegis of CENTO consists of two forms2
(a) Bilateral Technical Assistance
This represents technical assistance funded by one of
the participating states, The United Kingdom has been particularly
effective in this field, and the U, S. record has become impressive since
the establishment in Ankara of the Office of the U, S. Economic Coordinator
for CENTO? which is delegated considerable discretion as regards the
provision of this type of assistance. In addition to financing experts
in the fields of trade, health and science, we are using bilateral
technical assistance to sponsor informal meetings in the fields of minerals
development, labor, education and organization, and economic development
programing. This U. S. technical assistance has been well received.
(b) MultilatEalattELIELIMALIE12111321
This Fund is administered by CEO's Secretary General, with
the advice and guidance of a Working Party on Multilateral Technical
Cooperation. The United States has contributed $50,000 to the Fund, the
United Kingdom has provided the equivalent of $500000 (in pounds sterling),
and the three regional states have contributed together in equal shares
in local currencies the equivalent of 3509000. Of this amount about 3107,000
has been committed towards the implementation of 37 projects covering agri-
culture, education, health, economic development and transportation. These
ermmitments are anticipated to rise to about $145,000 by June 30, 19600
The United States has indicated its willingness to contribute an additional
$50,000 prior to June 30, 1960.
3. Im roving Trade and Related Matters
There has been considerable discussion and some joint action among
the CE-ITO partners aimed at improving trade among CENTO meMbers? through
simplification
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implifleation of customs formalities, easing of visa restrictions for
visiting businessmen, standardization of road signs, standardization and
marketing of common products, narcotics control, tourism, promotion of
regional products in European and American markets, etc.
Turkey is attempting to negotiate associate membership in the
European Common Market and has requested the understanding of Iran and
Pakistan. Turkey expressed a negative reaction to Pakistan's desires
for exploration of the establishmene of a CENT? Free Trade Area. Iran
and Pakietan have expressed concern over the possible effects on their
trade of Turkish association with the Economic Common Market and have
requested close consultation.
4. Atomic and Other Scientific _De
The British-sponsored CENTO Institut* of Nuclear Science ha i been
moved from Baghdad to Tehran, where it conducts training for teachers
an well as experimentation in the sphere of peaceful uses of atomic
energy. The United States does not participate in this Institute and
prefers to conduct its atomic energy programs with the regional states
on a bilateral basis.
CENTO has also shown considerable interest in stimulating scientific
coeperation among the member states. The United Kingdom has provided
a scientific fund of Is 10,000 for use to permit scientific exchanges.
The United States strongly favors the broader exchange of general scien-
tifie data among CENTO mothers and, with this in mind, has on all occasions
aecepted Scientific Council invitations to send an observer to its sessions.
Drafted by:
NE - Mr. Bennsky
Cleared ?ye -r
NR - Mr. Walstrom ED - Mr. Meyer
- Mr. Gannett ICA - Mr. Ferris
NEA - Mr. Kennedy C - Mr. Achille
S/S-R0 - Raymond L. Perkins, Room 5274 NS, Ext. 4445
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Statement
111?0?111.?????????0101.......MMD
livort of the Economic Committee
....0..00mia.JO?filei
The Economic Committee Report and recommendations contained
thein have been examined with care and we are pleased to give our
eonesernce I am sure that the member governments have likewise
e'eadie6 the Report and have noted the views expreseed by the several
eopeeeentetives present in the Committee including those put forward
by the United States representative?
The Committee is to be congratulated on its consistently con-
structive role in developing joint approaches to regional problems
and in fostering cooperative effort in the economic development of the
regien. The Committee clearly recognizes that the complex problems
with which it is concerned require time and patience to work out and
that d'SfL'iculties which nay arise between the members are negligible
tften eoeoered with the devotion they have shown to the objectives of
0-,N1'0, Ile Uniteri. States Delegation is also impressed with the scope
ree via:* of the economic cooperation that has been fostered under the
e
Of Ce7NTOO It is heartening to witness such progresep especially
ween e' call how vary few years have passed since the Economic Committee
eet,bliehed. The United States is pleased to continue to cooperate
--;Ln the other eembers in this worthy joint endeavor?
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regards and those of the peonle of the United States. You
may be assured that the American people will vfee these delib-
erations with keen interest. We are confident that they will
prove fruitful and will be crowned with success. I look forward
to receiving directly from Secretary of State Herter an account
of the CENTO Ministerial Couecil session upon his return17
le meat today on the eve of the fortheoe:ag Summit Confezeace. My
17ove7ement'n ingness to meet With the Soelet leaders at the high level
of Chief of State is prompted by its unsweeving vest for peace.
President Eisenhower has, said that he would go anyehere, any time to
further the cause of peace. But, to be meaningful, peace must have jus-
tice end human dignity as its cornerstones. Only then can mankind devote
its God-given and magnificent creative talen.:?s to those constructive pur-
suits which will benefit all humanity.
It is altogether fitting that CENTO?which, along with its sister
regional collective security organizations in other parts of the world,
is firmly devoted to peace?should concern itself uith this Letter., Fce
peace is indivisible, and our meeting here today reflects our peoples'
earaast desire to achieve it. Unlike the Communist satellite system of
cictetion and bondage, the Free World community consists ef sovereign
etates and independent peoples. They metes:11y respect each other, even
where they occasionally differ, and it is the free interchange of ideas
among them that bridges such differences as may exist. My delegation,
on its
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Please afIONIULAPPtRlitAtMCR/94galt:gteirarialingglagn? (=tied
"U.S. Position on Financing of Joint Economic Projeets", vbich vas erroneously
isaued as TEH D-9/1 on April 22, 1960, for the Eighth CENTO Ministerial.
Council Sesoion in Tehran, April 28-30, 1960. only the number has been corrected.
EIGHTH CENTO MINISTERIAL COUNCIL =SION
Tehran ARE1/28-30 122.
-
April 22, 19
U. S .Position on F ucin of Joint Economic-
EaELtjaaltsela
i_sLIalpated Position of ForelEaSemEnEs'aa:
1. The regional meMbera may be expected to regonst all participating
governments, and specifically the United States, to revive their eositione
concerning the provision of assistance needed to execute engineering and
economic surveys and the construction of joint economic projects, in order
to achieve a balanced rate of progress in the over-all implementation of
CENTO projects. (This is the substance of the Resolution on Financing of
Joint Projects-- EC/016, Final.) ???????=eamermr/O.e.onsweirmim.???????????S?mtos....sarawr
2. The regional nembers may express dissatisfaction vith the slow
progress in finding necessary financial support for joint projects already
under way as well as for approved joint projects on 'which action has not
yet begun for lack of fiaancing. In this connection they are also likely
to stress the political importance to them of financial support for these
ptditata..
3. The United Kingdom is expected to approve the Resolution on
____/Fineeta.21:22int Projects. While concurring with the reeional meMbera
view that the financing of CENTO joint projects , ents many problems, the
United Kingdom yill probably point out that, for the foreseeable future, it
will be enable to increase the level of its present* financial assistance
(approximately 850,000 per year devoted primarily to technical assistance).
4. Any one of the regional meMbers may propose the creation of a
epeoial fund for financing of 0 projects; the United Kingdom probably
vonld not agree to such a proposal.
Recommended U.S. Position:
If this subject is raised the Secretary may wish to state:
1. The United States supports adoption of the Resolution on Finallsimi
of Joint Frolects. In doing so it notes that (a) the United States considers
its bilateral economic aid programa as its principal channels for assistance
to the regional member states; (b) the United States has demonstrated that it
favors sound CENTO economic activities having a regional character, by its
snbetantial contributions to CENTO nultilateral projects; (c) it is the policy
of the United States
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Pleaae eneert the attached revise pee
ieeuee en Aeril 21, 1960, for the rl
A:(;_.7_31cz TroirsIG, Aplea 28-30, )e--
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e e in TER DeD/1 (Annotated Agenda)
e CENTO Ministerial Council
Repprt of the Secretary General - Closed
Co-ii Action: The Report will be noted. The Secretary General
may seek specific endorsement of the Report or,
alternatively, aeek discussion by the Council of
it in substance.
U. S. Position: The Secretary should take note of the Report, com-
mend the Secretary General for his frank, forth-
right and encouraging account of CENTO's affair
during the past six months, and state the United
States vill bear in mind his specific comments.
Document:
U. S. Views on the Report of the Secretary General
(1)-5/1)
VI. E229.1 of the Military Committel - Closed (possibly Restricted)
Council Action: The Council viii have before it the Report of the
Military Committee indicating in general terms
CENTO military progress monde to date. In addition
to discussing a CENTO Command Structure, regional
members may raise during consideration of the
Report a CENTO planning document entitled "Basic
Assumptions for Global War," CENTO liaison with
NATO and SEATO, the International Budget for CENTO's
Combined Military Planning Staff (CMPS), CENTO
military contingency pleneeng covering Afghanistan
and Iraq, and their desires for increased U.S.
military assistance,
U, S, eveition: The Secretary shoele indicate that the Report iv
agreeable, Re allotlid state the following positif:,
If the issues they ,r,oncern are raised by thers.
(1) The U. S. opposes the creation of a CENTO Cummand
Structure now or In the immediate future for: political
reasons but-believes that the PMDG and ORM thotld.be
encouraged to prlicsecA under the gadance c.of the
Militery CommIlAee vith perfecting contingency plans
for aueh a $txlmtAkr*:, to
iiionela4.,0. Page 2
1960
be availFible
uchliv
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The attached is a second revision of' page 4 to D-6/1 - US Views on Report
of the Military Committee. It replaces an earlier revision dated April
21, 1960.
SECRET
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(d) Infrastructure
(i) We do not favor the establishment of a CENTO "common
infrastructure" program, which would have to be financed largely by the
United States. We have egreed? however, to a CENTO infrattructure Coordinating
Committee to develop common standards. We also agree that the CPS might
usefully make a study of existing and required facilities.
Discussion::
D-6/1
Revised page 4 (second revision)
April 22, 1960
SECRET
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21esze substitute the attached page 3 in ITH 1102/1 (lraft of Qt?va-..ng
PrNj:.,c Rexarho of fir,7 Sa(:-..zcary) issued on Apra 22) 1960) for the
3ishh CMNTO Ministerial Cameil Scion in Thram, ApriL P,8-0; 1960.
0A 01:Ctf.1 to shara othcr VE way soil
fro:day; our o%:In asscissaaat of ':71K.1', problman m"( Tfloace an.61 the End!.510iit
The United States is rnacm thst oLath to ie au
czasy onno It uill v=4 vitt. a77. eaFtic to the
s'insoity of the Soviet UltivE2o xota-Aztams. finU4; 'tear :;.a
aarsl the i
forests of it triemlo tmf,rUoc.
The fortheoming elmu7,t CoufeLYnce in ,r2o y tho nerd
foo Utresecsrity armazgolis SPgh Icet;,? the
eot Soviet willinzues's to dieolEo the i3MCW v1:1) peaso is in
psa, thz maeslm? of MITC ? s end k'iNte7: g97;,:tftti'10 seity cogalliga-
tionW onccQEs in ereatirg determit forae. My Grre:Fminnt,' etronz
Iwt of CTO vill sortinue. We Gro deorly Ccnocious oT the useful
tior'ft that hes already becn nndertati azd tlrz eanfid(mt thnt other
imno7Aant results urill be olAf_evoii . To do c,o, hronvor, all of us will
tsve to ,sefey9 or shoulder& to the .0h(-51. My Govormwmt is prond of
the aoatibutkInsxLeh Ulfited Stateu program3 of ezmaoic amd dl itary
aid; as uall as technical assicua; ,:?xtonded 'bath Miaterelly and
thihC.IETrc prograws, have- nado to strenitbming the st3tes here
oeTjhlca. Tcaay UENTC ig a etz'eng crlaniacUon uin a talmoughly
ga4t(i-at 8?Alt-atariet under tbo eLeqreth dlieeton of tne able Scleret,u,T-y
Mumal. Ito ceveral. colwit.itt?oeF E'oJd neir np)3idieRv bodins maat
with Impose nna efficdenoy. To b el".2Te, not all of ita
aTilcd-Titkee flow foxwar et a )VV1202 xate of' jpD/JOEIO. While onmn rove
ahwl rapidly) othera Nay eaz- mrfmtel-ily to 171,711. titan TEefcre again
gatning
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C01.51NTZAL
EIGHTH CFRIO LY2. 2:S31011
Teh_r.28303.an.960
Draft of Opeaing Public RemnrkfuE21.12_22.2Ests2
K2'. Chairman, Your Excellencies, Distinguished Guests:
TER D-2/1
April 22, 1960
Oa behalf of the United Staes Ohoorver Do1egation3 I thaUlt you
Zor your warm welcome to Tebran. The gracious hospitality of the
Covemmast ad people of Iran is proverbial, and once again we are
its fornate beneficiaries. We deeply appreciate the rally courtesies
nfl kind consideration Shown 12.0 by our host, the Goverment of Iran,
amd the arrangements which have been made to receive thl.s eighth
cAheri2g of the CTO Ministerial Council. I m I;ersona.U.7 vatifled
at this opportnaity to continuo my association 'zIth CO and to renew
1,w1a.iendshirs With the distingc_Shel dolega7Zes asscubled here
today.
0.20
we /ant met in WaSiAington, President asonhozer has
vicitc;3d Iran, Patistsn and Twkey. hau charcicf, lie with conveying
to you Ms deep appreciation O. uvoarelcoF:2 sud horpitclii7 ?
.cx.italff, &ring his visits. no ale() asked that X convey to yon today
t-/e creritingu and warn wishe3 of the aovernment and the :e.op,le 00 the
Unite: Etateo.
Ev.zgestcd addition delE fbilore:
ve just received a szczga fzea the P;Tezf;.dent which he has
molr,aCm to rend to the Counla:
To the distinamiehed delegs,Itons assztblr.A in Tehran or the
BIGhth Session of the CERT? lanisterial Council I seadArlmon
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reeeerds and thoce of the pee:91e tae Uelted States. You
rsy be assured that the American people will view these delete
ereticas ulth keen interest. We are congideat that they will
%wove fruit:Cal and will be crowned with success. I have asked
Decretery of State Herter to report personally to ne on the
CO Ninipterial Council session emeedietely after his returnI7
We meet today in the ohadow of the forthcomieg Summit Conference. L'y
Covereeezent's wi3lingness to meet with the Soviet leaden at the high level
00 atie of State is prompted by its unerving gpeat for peace.
leeeeMont Eisenhouer has said that he would go ce,ywherel, any time to
arether the cause of peace. But, to be meaniegfel, peace rest have Sus-
teca bumme degaity ars it cornersennao. Only then cr rankind devote
.ite esa-Eiven ned magnificent creative telents te those consteuctive pure
emite Tfeich ulll benefit all humenity.
Zt is elteseeher-fittin3 tbet CMTO--which, acne '4th it sister
:eee3eee1;17 collecteva cecurity orgeelizeicao ia osr parts of the vorla:
:;a1.11 devoted to pei,,,ce--ahsuld emeem itselZ with this uatero For
indlricKlble: and cm7,17Lectinv here todsy :r3flecls our peoples?
Aezio to ecb:leva it, Wilke the ComwOzt astel.lits zystem of
0,01(71.and band1-3v: the Feea Vorld mmunity cwaists of sovereign
1-AXIC CAA indeyendvat peopleo io uaflyre3j?ect awh other: even
1:Yfo r:ny oeccaiomsly diffor: and 1.." io the frisse inter2hmge of Ideas
thm that bridges auch diTferernes as my t0 Qr delegation:
on ete
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on its part, expects to share mith otTiler CY/w10 partners, freely and
frankly, our awn assessment of the problems of peace and the SUmmit.
The United States is under no illusion that the path to peace is an
easy one. It will proceed with all caution in order to prase the
sincerity of the Soviet Union's protestations. It mill fully bear in
mind the interests of its CTO partners.
The forthcoming Summit Conference in no may diminishes the need
for collective egcurity arrengements ;such as CERTO. Indeed, the
apparent Soviet willingness to discuss the issues of peace Is in
raft the measure of C
OV. $
s and its cister collective security organima-
se.ccess in creating a deterrent force.t.c7 Government's strong
=mart a GEM will continue. We ere deeply conscious of the useAll
mrk thataas already been undertAen and are comOident that other
iaeortnnt results mill be achieved. To do so, hcaever, ell of us will
;Klee to Leep our shoulders to the wheel. 4,Ny cooverimEnt xlzma of
me21.:;7.1b2tion5 rhich Milted States programs cO econaatc and military
elE, as Tell as technical aoristance, extended beth bilaterally and
thecurp, (TITO programs, asva made to strengtheKie?he states here
asoafTo1317.0 TOdzi cram Is a strong organisation ufth a thoroughly
ceezetame Secretaeiat under theenergatic direct of the able Secretary
cif.meral. Its oeverel comitteeo and their sdboierybotlies met
2007.1=170 rith piwpose end elaciency.
be iale;,:o? not all of its
ectivitios glom foreard at au72korm rate of proess !!hile same move
ahead rapidly, otbor iy ewe= morAmtarily to P/nrk to before again.
gaining
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gainins mamentam? I em contideut CUTO's next give years, like the
gIrst five years of its existence, vill cLou important advances.
Geatlavm:
\
1h0 United States C larveiT Dticzatiom looks forwal7d to partiWirting
'what it 'Ls eongident ;All be a frultfal mooting?
p Deagvcd ny: Cleared by:
NEA/BR - Mr. Gannett/Elite C - Mr. Achilles
P -Mr. Berding
NEA - Mr. Hart
SOV - Mr. McSueeney
Raymond L. Perkins, 5274 NS, Ext. 4445
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AP ,
EIGHTH CENTO inUISTERILL COUNCIL SEF.SION
Tehran, April 28-30, 196)
U.S. Position on FinancinG of Joint Feeenomic Pec4aets
. eeee
Position Ilpor
Anticipated Position of Foreign Gueeenrents:
ataieVterant Se eaw re ate q.m.e-at
1 The eegioaal members may 'be expected t.; request nrelparticieetieg
governments, and speeifically the United States, to revive their pouitiffee
conceveing the proeleion of assistance needed to execute ergineering and
economic surveys and the construction of joint eeonomie projeete, in order
to achieve a balanced rats of progress in the over-all impleeentatien
CEETO erojects, (This is the substance of the Resolution on Financing of
Joint Projects -- EC/8/Di6 Final.)
2, The regioeni meeeere may express diesaeisfaceion wslth the sloe
peogreeb in finding neeessary financial support or joint projects elreaay
under' 'say as rell ae for approved joint projects on utIch ection hes not
yet begun for lack of financing. In this conneeeion they aye also likely
to steoss the politicel impertance to them of financial euppert for thece
prejouts.
3c The United Kingdcm io expected to upprlyve the Resolution on
Financing of Joint Projnale. While concurring eeth the regional membeee
V16U ?6.-1v* 4fle einancing o CENT? joint projects presenes many problems, the
United Kingdon vill probably point out that, for the foreseeable tere) it
eill be unable to increase the level of its present financial assistance
(a.pproeiesetely 1.3 8509000 per year devoted primarely to technical aseintance),
4, Any one of the regional members may propose he creation of a
special, fund for financing of CEUTO projects; the United Kingdom probably
sculd not agree to such a proposal.
Recomeended U.S. Position:
I: this subject is raised the Secretary may wish to state:
1. The United States supports adoption of the Resolution on Financing
of Joint Projects. In doing so it notes that (a; the 1717111757-81-RIFFITainrs
1-Es-ITTEgia-JFCnomic aid programs as its principal channels for assistame
to the regional member atates; (b) the United States has damonstrated that it
fevere sound CETO ?commie activities having a regional character, by its
substantial contributions to CENTO sailtilateral projects; (c) it is the polity
of the United States
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of
of the United States, in regard to development projects, to concentrate its
assistance throughout the world increasingly on a loan basis; the a.ttention
of the regional members is invited again to the Davt!lopment Loan Fund as a
possible U.S. source for financing economically sound and technically feasi-
ble CENTC projects.
2. If a proposal is made to array.ge for a group of financial expc..rtg
to study the problems, we should suggest that such a propooal be submitted in
detail in. the form of a memorandum to the CENTO Secretariat for subsequent
circulation and study.
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Discussion:
All CENTO projects are outside of the national development schemes which
already place heavy demands on the regional membere, resources. Naturally
this presents many problems in financing. However, it is in the interest of
the regional members to decide on the most economic allocation of their scant
resources and to determine whether they wish to put these assets into joint
CENTO projects or into others which they believe have a higher priority in
terms of national requirements. In some cases the regional states have sought
CENTO endorsement for projects which aopear to be (1) primarily national in
character; or (2) of a regional nature but with little economic justification.
The United States views the advancement of the regienal concept as an
important feature of all of CEnTO's activities. This is particularly true in
the economic sphere if sound regional projects are faand which also acsiot in
furthering the urgent national requirements for economic development. In
suonort of this, the United States has committed (1957 to present) an amount
of i22.467 million to CENTO multilateral projects, exclusive of a modest tech-
nical assistance program. U.S. bilateral economic aid to regional states
continues to be of large magnitude, amounting to approximately S511,9 million
for FY 1958/59 and approximately $306.3 million to date dering FY 1959/60.
The Regional Members are becoming increasinoly upset and discouraged over
the problem of finding financing for joint projects already agreed to at
previous meetings of the Ministerial Council. They point cut that while those
joint projects are Of great importance to the ecolemic demlepment of the
region, they tend to present special financing probleas ie that thee," ie free
qeently not l'bankable" in a short run sense.
Dt?.ift&1byzE7D Ar. lever and 0.1ared NE - Bennexy
hEA/NR -Mr. Waistrom NEA - r. Kennedy
E - Mr. Lynn
ICA - Mr. Ferris
C ?:r Achilles
---------
S/S-R Ro-emonQ L. Perkins Es911_27421a.
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TER D-0/4
April 229 1960
EIGHTH cmp MINISTERIAL COUNCIL SESSION
Tehran, April 28-3q, 1960
Secretary's Arrival StallimaL_STehranl
I am particularly pleased to be in Tehran for the Eighth Session of
the Central Treaty Organization Council of Ministers. I am pleased not
only because this visit affords another opportunity to see again my
esteemed colleagues of the Council with whom I met for a fruitful session
in Washington last October, but also because it brings me to Tehran, the
capital of a country famed by its beauty, its history and its hospitable
people.
Our last session was my first opportunity to participate at first
hand in the deliberations of the Council as the United States Observer.
I found it a rewarding experience, for in CENTO a lively spirit of co-
operation toward the achievement of mutual objectives is very much in
evidence. Experience has shown ut the wisdom of cooperation for mutual
defense, the advantages of collaboration for regional economic develop-
ment, and the political benefits which derive from our efforts to achieve
greater unity of aims and greater understanding through regular exchanges
of views.
These are the works of peace, and the government and people of the
United States valuetheir association in CENTO with the peoples and govern-
ments of Iran, Pakistan, Turkey and the United Kingdom. These five nations
are assured of the sympathy and approval of all countries endorsing the
objectives of the United Nations Charter, under which CENTO is organized.
There are othenwhose attitude. toward CENTO members is in violent disaccord
with charter principles. Iran, in particular, has been the target of an
unprecedented propaganda attempt to subvert its constitutional order. The
Seventh Session of the Council of Ministers formally deplored this un-
warranted interference in the affairs of this region in a resolution which,
I am confident, continues to express the judgment of the Central Treaty
Organization.
But however crude, however subtle or however long sustained such
assults may be, the free governgmnts and peoples of CENTO member nations
will, I am confident, continue in the keen pursuit of their goals. The
Government of the United States is proud to be associated with these nations
in continuing our work together to protect our freedom and to promote a
better life for our peoples.
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CaSHI2DEI\TIIAL
TEH D-14/2
April 22, 1960
EIGHTH CENTO MINISTERIAL C SESSION
Tea_ "..AER2an 28-3o 3360
arters Acooemedations for CENTO Seereteriat
Position Parr
Antjcitd Positions of Foreign Governments:
1. Iran probably will maintain that the Organization moved its head-
starters to Ankara on the understanding that the Turkish Government would
continue Iraq's policy of providing appropriate facilities at no expense
to CENTO. The Iranian Government will note in this connection that it
ovides Tent-free building and other facilities to CENTO's Institute of
Rua Seience in Tehran.
2. The Government of Pakistan is likely to associ te itself with the
Iranian view but may express a willingness to discuss alternative proposals
concernie3 new headquarters accommodatione.
3. The United Kingdom probably will advance the vie/ that any build-
ings venal by the Turkish Government and made available for the Secretariat
sheuld be provided free of charge but that the Turkieh Government should
not be obliged to rent buildings to be occupied by the Oreenization.
4. The Turkish Government is unlikely to concede that an understand-
inZ ever reached to the effect that it should, as host government, pro-
vide reat-free acecemodations for the Secretariat for any definite period.
Recommcof2ed U. S. Position:
1. The Unit States is prepared to accept any r soneble solution to
this grdblem acceptable to the member Governments. As a practical matter,
in vice of the local mast= as to rental rates, the United States prefers
purchasiv3 to leasing.
2. The United States appreciates the facilities made available to
CO by the Turkish Government and the continuing rent-free occupancy of
the Grand National Assembly building.
3. The United States supports the U. K. position that the Turkish
Goverimmaat should not be obliged to rent a privately-owned building to be
occupied, by CENTO rent-free.
4. The
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4. The United States vould be agreeable to the purchase by CENTO
of a cultable headquartmall building, provided: (1) the member Govern-
meuto so agree; (2) the costs are distributed on the normal cost sharing
formula.; (3) the contributing countries are assured an equity in the
value of the building, it being understood that no coannitment can be
made until the necessary appropriation or allocation of funds is obtained
throu our legislative process; and (4) the U. S. contribution shall be
made in TUrkish lira.
Discussion:
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Diseassian:
FoIloving Iraq's defection from the Baghdad Pact, the Organization's
quarters were relocated from Baghdad to Ankara at the invitation of
the TUrkish Government. For this purpose the Tarkish Government made
space available in the new Grand National Assembly building, into which
the Secretariat and the Combiued Military Planning Staff (CMPS) moved
in October 1958. The Turkish Government announced in *WI 1959 that
the new Grand National Assembly building would have to be vacated by
November 1959 to permit the Turkish parliament to occupy that building.
This deadline was changed to November 1960 when the eecretariat end
the CMPS were unable before November 1959 to find adequate sdbstitute
accommodations in Ankara and when the Council was unable to agree upon
the means of financing a new headquarters building if a suitable one
Should, be located.
The Turkish Government, maintaining that there are no other vern-
ment-owned buildings in Ankara suitable for use by the Secretariat, has
aidel the Secretariat in a search for new accommodations? This search
has brought to the Organization's attention a newly-constructed but
still unoccupied building, priced at about $780,000, which it is
reported, would house satisfactorily the 3ecretariat and the CMPS. On
Menai 17, 1960, the Turkish representative announced in the Council
Deputies that the new Grand National Assembly building would continue
to be at the disposal of CENTO until a suitable building was found and
made available to the Secretariat
Drafted by:
10/OIL - Mr. Wachob
.1.1.1802=11.1?Itgn?11???????ItilOCSIOLWIIII.
Cleared by:
OIA - Mrs. Westfall NE - Mr. Walstrom
OB/IAB - Mrs. Trenary C - Mr. Achilles
Bureau of the Budget
11-7S7-110 RayiEaf177-NETalarTlERET-974-Itr-Z-7417
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TE H P-013 a
April 23, 1960
DEPARTURE STATEMENT FROM WASHINGTON FOR CENTO
AND NATO MEETINGS AND VISIT TO GREECE
My journey first takes me to Tehran to attendethe meeting of the
i/ of the Central Treaty Organization. Immediately thereafter, the
ktceism Ministers of the NATO countries will gather in Istanbul for the
eegler spring Ministerial meeting of the North Atlertic Council. A
to in Athens will precede my return to Washington.
My vi it to Iran is a welcome opportunity to mese friendships
eitlx the leaders of a county bound by traditionaleerd close ties to
tte CzAted States. I look forward to meeting eith our associates in
f-".METC. We in the, United States attach the greatest importance to the
Certeel Treaty Organization. We strongly support CEATO's steadfast
effeets to strengthen the principle of collective security in that vital,
eeee ef the world and to prcmote the economic ue1l-being of their peoples.
My vieit to Turkey, a etaunch friend of the United States and stalwart
ETIT or both CENTO and HATO, is also most welcome to me.. At the Ministerial
eeeteee, of the NATO Council we obeli, in addition to other anbjects, dis-
QUEB eeeeparations for the meeting of Heads of Governeent in Paris on
111r.y 15*.
I eme;ls appreciate the invitation of the Greek Gcvernment to visit
and the courtesy shoen by the King and geeen of the Helleees in
Lnj to receive me. Prime Minister Karamarlia will also sea me for
,It7,c7mEision of subjects of interest to Greece and the United States.
Ireis trip eill take me to three of our oldest friends. It is my
7;'eee that it ell/ eerve to atrengthen further the ties telieh foe so main'
eeeec (?eve bound us in close ere intimate friendship.
- MY!. Loblamia
Cleared by:
RA - Mr. resseeden VR - Mr. Unlstrom
GTI - Mr. Rope F - Mr. Berding
NEA - Mr. WAR C Mr. Achilles
S - Mr. Kirk
1-3-R0 Rayflund L. Parkins, Room 5274 NS, Emt. lat45
Reva3d
Aril 23, 1960
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TEH Memo 3c
April 23, 1960
EIGHTH CENT? MINISTERIAL COUNCIL SESSION
ril 28-32.212.
Index
Attached is an index of papers prepared for the
Eighth CENTO Ministerial Council Session to be held in
Tehran, April 28-30.
Raymond L. Perkins
s/5-R0
Room 5274 us, Ext. 4445
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COMPIDFLITIAL
MEM
CE NTO 11:3ISIERIAL COUNCIL SEZSION
Tehr_l a...a April 28- 3.2t..12,_.. 60
Index of Pawl
O. GENERAL
2,-anteted Agenda (1,40/1)
Tab
A
reper (D-0/2)
? rtura Staktere.cint (P-0/3a)
,;tve..1 Statement (Warm) (D-0/4)
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ITSTALIATION OF CHAIRMF
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II. OPENING OF THE METING
Remarks by the Secretary (D6-2/1)
COM IDENTIAL
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1110 k.DOETION OF AGENDA
Positicm Paper (D-3/1)
CONFIDENTIAL
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APPOINTMENT OF A DRAFTING COMMITTEE
FOR THE FINAL COMMUNIQUE
CON LDNTLL
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V. IMPORT BY THE SECRETARY GENERAL
U.S. Views on Report of the Secretary
General (D-5/1)
Document: Report ol the Secretary
General
Tab
A
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VI. REPORT OF THE MILITARY CCIIMITTEE
U.S. Views on Report of the Military
Committee (D-6/1)
Document: Report of the Military
Committee
CENTO Command Structure and Belated
Questions (D-6/2) .
CENTO Military Contingency Planning
(D-6/3)
Basic Assumptions for Global War (D-6/4)
Reference Papers
Table of U.S. MAP for CENTO
Members (11-6/1)
Current JCS (MAP) Force Objectives
for CENTO Members (R-6/2)
CONFIDENTIAL
Tab
A
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VII. REPORT OF THE LIAISON COMMITTEE
U.S. Views on Report of the
Liaison Committee (D-7/1)
Document: Report of the Liaison
Committee
Tab
A
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VIII. REPORT OF THE COUNTER-SUBVERSION COMMITTEE
Tab
Views on Report the Counter- A
Subversion Committee (1)-8/1)
Document: Report of the
Counter-Subversion
Committee
CONFIDENTIAL
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COFI7F.LETIAL
IX. REPORT 04' THE ECONCM1C ("OMIT=
Tub
U S. Views on Report of the ECOUOWIQ
Committee (D-9/1)
Document: Report of the Economic
diFieweg.......00,11?11?110
Committee
U,S. Position on Financing of Joint
Economic Projects (D-9/2)
U.S, Position on CENTO Tele- ,
communications Project (D-9/3'
U.S. Position on the T-rkish-iranlan
Railway Link (D-9/4)
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X. ANNUAL REPORT OF THE ECONOMIC COMMITTEE
MIL1222
Tab
U.S. Views on Annual Report of the A
Economic Committee for 1959 (D-10/1)
Document: Annual Report oi the
Economic Committee for
1959
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XI. REVIEW OF THE INTERNATIONAL SITUATION
Tab
U.S. Adherence to CENTO (D-11/1) A
UAR Developments (D-11/2)
Situation in Iraq (D-11/3)
U.S. Views on Afghanistan (1)-11/4)
Iran-Afghan Relations (D-11/5)
Afghan-Pakistan Relations (D-11/6)
Soviet Pressures on Iran (1)-11/7)
Indo-Pakistan Relations (D-11/0)
Khrushchev-Menderes Visits (D-11/9)
The Jordanian Situation (1)-11/10)
U.S. Attitude Toward the Summit (D-11/11)
Background Papers
Political-Economic Situation of Turkey (B-11/1)
Political-Economic Situation of Iran (B-11/2)
Political-Economic Situation of Pakistan (B-11/3)
Cyprus (B-11/4) 0
Economic Cooperation, Trade and Development
(B-11/5)
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mum
XII7 PLACE AND DATE OF THE NEXT mINIEENkjgargaa
Places and Dates for Ensuing Meetings (D-12/1)
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XIII. AIIROVAI,OFivoi.uuta ur
CONFITMTIAL
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EP/. ANY OTHER BUSINESS
U.S. arid CENTO International Budget
(D-14/1)
Headquarters Accommodations for CENTO
Secretariat (D-14/2)
CONFIDENTIAL
Tab
A
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XV. CLOSING ARRANGE:MIS
CON ID
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