(a) Medium tank with.75mm.'gun     :..
      (    -) Medium tank-with76mm. gun
          - (1)Y fromnew-procurement
          (2) by- modic~ation of older models
   (3) What supply iof spar& parts kan be-! providedl no6w and in the
future for the abovye types? What cost and ý,procurement problems
-are
involved?-.
  (4) If a battalion or lessiof either ofthe" above is to be considered,
-what support equipment, such as heavy repair items and recovery
velhicles'ishuld, also be contemplated, to obviate collapse of equipment
or loss intact in enemy actionV? What-cost and delivery problems exist
with respect thereto.?
   (5) Are f urther tank destroyers or light tanks more appropriate
-for Iran, rather than medium tanks? If so, please supply cost and
procurement data.
   (6) Subsequent to the Shah's visit the Iranian Embassy urged the
Department of State to provide $5,000,000 worth of small arms am-
munition:. (7.9); and the: Department is confidentially advised by
Remington that Iran is proposing to purchase 50,000,000 rounds.of
Canadian manufacture from them. Remington has requested the TDe-
partment's advice. In telegram 1651, of December 12, 1949,'the Em-
bassy- at Teheran states its belief"that a 59,000,000 rounl level is
adequate for Iran, that there are 50,000,000 rounds on:hand, and that
the remainder should come from local production. Iran, of course,
disagrees with this view. The comments of Defense are-requested on
this problem, particularly. with respect to the desirability of pushing
the local manufactureof small arms ammunition, the possible desir-
ability of developing the Canadian-owned industry, and thus indi-
irectly4giving aid to Canada, andathe question whether the funds
propo     to s be spent by Iran for this project should be spent otherwise
in view of our contemplated program of aid for.Iran. If some items
not deemed militarily essential- need Ito be given to-Iran. for politico-
military purposes,s'should ammunition. be considered, as one .ofthese
items rather than toIbe dealt with by purchase? On the other hand,
does the United States contemplate standardizing small arms weapons
in Iran with. U.S. Weaons' This particular item is a Inatter -of:some
urgency as it is reported that the' Canadian factory may soon go out-of
production if a contract is not placed.
   (7) The Aibassador and General Evans have strongly recom-
 mended including 0recoilless 75 mm. rifles. Can this type weapon, of
 great psychological value, be released, and does Defense consider it
 practical?2-
   (8) As; the,, Department of State considers that some items be in-
 cluded, if.. possible, which will convince the Shah of our appreciation
 of his role,' and so strengthen his morale, which of the above items, or
 other similar items, would-Defense, recommend, considering also
       (a) the desirability of obtaining the most psychological value
     for the least expenditure either within or, if imperative, beyond
     present program ceilings.,
       (b) the necessity of not entering upon projects which would
     constitute, over years to come, inescapable responsibilities to
     main~tain, replace or augment items offered.


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