CABLE TO AMEMBASSY TEHRAN FROM THE SITUATION ROOM

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-262-1-31-5
• Release Decision: RIPLIM
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: January 11, 2017
• Document Release Date: October 9, 2009
• Sequence Number: 31
• Publication Date: November 1, 1974
• Content Type: CABLE

No Objection To Declassification 2009/10/09: LOC-HAK-262-1-31-5
O 011225Z NOV 74 Z FF- 1 Z FF-k Z YH
FM THE SITUATION ROOM
TO AMEMBASSY TE + AN
ZEM
VNCL A S
TOHAK103
P A S S T O I R E M E R/ G O IM P E R T FOR THE SE CR E T A R Y
KISS INGER TO PRESS SHAH ON OIL COSTS - BY JACK ANDERSON
SECRETARY OF STATE HE NI? Y A.. KISSINGER W ILL HOLD CRUCIAL D IS-
CUSSIONS IN TEHERAN THIS WEEKEND WITH THE SHAH OF IRAN, WHO
HAS THE POWER TO BRING THE STRATOSPHERIC COST OF OIL BACK
DOWN TO EARTH.
THE SHAH HAS BECOME ONE OF THE WORLD' S MOST RECKLESSLY GREEDL Y,
UNBEL IEVABLY WEALTHY R UL ER S. HE SPEARHEADED TIE MOVE TO QUADRUPLE
OIL PR ICES, AND HE STILL ISI?d' T SATISFIED. HE HAS HINTED t HAT
THE OIL - PRODUCING NAT IONS SHOULD CHARGE EVEN HIGHER PR I CF. S.
HIS MORE RESPONSIBLE NE IGHS OR , SAUDI ARABIA'S KING FAISAL,
IS WORR IED T HAT SOAR ING OIL COST S COULD ENDANGER THE INo USTR IAL
WEST. HE HAS WR ITTEN A PR IVATE LETTER TO THE SHAH, WARNING THAT
NE IT HER KINGDOM WILL LAST IF THE WEST IS PLUNGED INTO ECONOMIC
CHAOS BY EXORBITANT OIL COSTS. TO ADD EMPHASIS TO THE WARN ING9,
KING FAISAL DELIVERED HIS LETTER TO TEHERAN IN PERS(N.
SA UD I ARABIA AND I R A N PRODUCE ALMOST HALF O F THE OIL THAT
IS PUMPED B Y THE 13 NAT IONS OF THE OIL CARTEL. T HLIS, THEY COULD
ER EA K THE OIL SQUEEZE BY ACT ING T OGET HER T O CUT PR I CF S.
AT LOWER LEVELS, REPRESENTATIVES OF THE TWO OIL KINGDOMS ARE
DISCUSSING A JOINT PRICE REIJUCT ION. BUT THE SHAH KEEPS TALKING
AROUT HIGHER, NOT LOVER PR ICES.
HE IS DETERMINED TO USE HIS ENORMOUS OIL WEALTH TO MAKE
HIMSELF A WORLD. POWER. LAST YEAR ALONE, HE SPENT S4 (FOUR)
BILLION FOR U.S. MILITARY EOUIPMENT. THIS HAS MADE IRAN THE NO. 1
MILITARY POWER IN THE STRATEGIC PERSIAN GULF.
KISSINGER HAS GONE TO TEHERAN, ACCORD ING TO STATE DEPARTMENT
SOURCES PREPARED TO TREAT THE SHAH AS A MILITARY ALLY AND PROTTCTtR
OF U.S. INTERESTS IN THE GULF. KISSINGER IS COUNTING HEAVILY
UPON THE SHAH' S GOODWILL T O LOWER OIL PR I CES.
THIS IS CONTRARY TO THE ADVICE OF AT LEAST ONE TOP POLICY-
MA KER TRFA SUR Y SE CR El AR Y W ILL I A M E. S IMON, WHO FE AR S K I SS IMCER
HAS UNDEREST IMATED THE SHAM' S GREED AND AMBIT ION. IF THE SHAH
PEFUSES TO BP ING DOWN HIS PR ICES, SAY OUR SOtRCES, SIMON
WANTS TO RETALIATE BY QItADRUPL ING THE PR ICE IRAN MUST PAY FOR
tl.S. ARMS AND *HEAT.
NOT EVEN THE CENTRAL INTELL IGENCE AGENCY, WHICH SAVED THE
SHAH'S TFRONE IN 1957 HAS HAD ANY INFLUENCE WITH HIM ON OIL
PR ICES. T If LATE CIA CHIEF ALLEN DULLES FLEW TO ROME 14 YEARS
AGO A ND PL OTT ED *11 T H THE SHA IR' S S I ST ER v PR I N CE S S A S HR A F, T C
OUST IRANIAN PREMIER MOHAMMED MOSSADEGH. THIS I EVENTED THE
S?- A H' S OVERT PER 00W
.
No Objection To Declassification 2009/10/09: LOC-HAK-262-1-31-5
ON-FILE NSC RELEASE
INSTRUCTIONS APPLY
 HE SHOWED H No Objection To Declassification 2009/10/09: LOC-HAK-262-1-31-5
ITTIC f t*" CIA TO INSTALL RAC tO AND TFLEklTR Y INTERCEPTORS,
t..01ING-RANGE RADAR DEVICES AND OTHER HIGH-POWERED ELECTRONIC
FqUIPME`IT IN HIS COU"ITR Y.
AFTER THE CREEK MIL ITAR Y JUNTA YAS OUSTED EARL IER THIS YEAR,
THE CIA PULLED MANY OF ITS FACIL IT IES OUT OF ATHENS AND MOVED
THEM T O TEHERAN. THE CIA ALSO OR I S CLOSELY ;WITH SA VA K, THE
SHA H' S SE CR E T POL I CE..
YET I HE CIA HAS LOST THE HOLD IT ONCE HAD ON THE SHAH. HE "\A S
OiR BABY," A CIA SOURCE TOLD US, "BUT NOW HE HAS GRO?"M UP.?"
IT REMAINS A MYSTEP Y, MEANWHILE, HOW THE SHAH HAS AL'sAYS
MANAGED TO WORK HIS WAY IN WASHINGTON, HE HAS PEEN ABLE TO
GET JUST ABOUT WHAT HE WANTS FROM THE UNITED STATES, " IT HAS
EDEN A ONE-WAY STREET," A CABINET OFFICER SAID.
ONE ALARMING PO SS t E IL IT Y, NEVER FULLY PROVED v I S THAT THE
SHAH HAS PAID OFF TOP AMER ICAN OFFICIALS, HERE APE THE ALLFGA-
TIONS, WHICH HAVE BEEN VIGOR OU`L Y DENIED:
A FORMER JUST ICE DEPARTMENT OFFICIAL, W H O HAS TRAVELED
EXTENSIVELY IN IRAN, REPORTED TO THE SENATE WATERGATE COMMIT-
TEE T HAT THE SHAH HAD DEL IVER ED HUGE SUMS T 0 FOR MEP PRESIDENT
NIXON. WE CONTACTED THE OFFICIAL WHO DESCRIBED HIS SOURCES TO
US IN CONFIDENCE. "I AM CERTAIN IN MY OWN MIND," HE WROTE US,
"T HAT I F THE. IR NAMES CAME OUT, T HE Y WOULD BE I N PR I SON OR DEAD
WITHIN 24 HOURS." RE CAN SAY ONLY THAT HIS SOURCES ARE HIGH
IN TFIE IRANIAN GOVERNMENT. THE WATERGATE COMMITTEE NEVER COT
AROUND TO INVEST IGAT ING THE CHARGES.
WE SPENT SIX MONTHS CHECKING INTO.REPORTS THAT THE SHAH
HAD FUNNELED MONEY INTO T HE NIXON RE-ELECT ION CAMPAIGN BY WAY
OF MEXICO. WE MADE CALLS TO TEHERAN, GENEVA, BONN, MEXICO CITY
AND OTHER PLACES. SEPARATE SOURCES, ALL OF THEM ANTI-SHAH
AND THEREFORE SUSPECT, T OLD US T HAT THE SHAH HAD TR A N S F E R R r 0
MORE THAT $ 1 (ONE) MILL ION FROM HIS PERSONAL, NUMBERED
ACCOUNTS IN SWITZERLAND TO THE BANCO DE LONDRESY MEXICO IN
MlXIC0 CITY FOR OEL IVERY TO T HE NIXON CAMPAIGN. SWISS FAN'KING
COUR CES CONFIRMED THAT THE SHAH WAD SENT MONEY TO MEXICO FROM
THE SC FIZER ISCHE r3ANK GE SELL SHAFT. WF COULD GET ND RELIABLE
CO IF IRMAT 10 No HOWEVER, T HAT THE MO NE Y EVER REACHED ANYONE COESNECTEL:
/v ITH :MR. N I XO N.
A FORMER AIDE T O VICE PRE SIDE NT HUMPHRE Y T+OLD US HE HAD
BEEN APPROACHED BY AN EMISAR Y OF THE SHAT DURING THE 1968
RESIDENT IAL CAMPAIGN, THE EMISSARY ASKED WHETHER HUMPHREY
WO ..IL 0 LIKE A CAMPAIGN CONTR I B UT ION FROM THE SHAH, PUT THE
APPROACH ',v AS REJECTED.
AN EXILE[, IRANIAN LEADER NAMED KYPER KHAN TESTIFIED BEHIND
CLOSED SENATE DOORS IN 1963 T HAT THE SHAH HAD G IVEN MILL ION-
iOLLAR CONTP IBUT IONS TO A L 1ST OF D 1ST INGUISHFD AMER ICANS.