The Department of State Bulletin
Vol. XXXI, No. 804 • Publication 5671
November 22, 1954

FOA Announces Program of Aid to Iran

The Foreign Operations Administration on November 2 announced that the United States is prepared to offer aid to Iran in the form of loans and grants totaling $127.3 million.

Both Iranian and U.S. Government circles have concerned themselves recently with the indication that, even with an oil settlement accomplished, it would be 3 years until Iran’s oil revenues would permit it to finance large-scale development from its own resources. To help Iran during the interim period, the United States has decided to make available up to $127.3 million which would be provided from both Foreign Operations Administration and Export-Import sources. This total includes $21.5 million for a technical-cooperation program; $52.8 million for consumer goods imports, which will be sold by the Iranian Government for local currency (rials), which in turn will be used to support basic governmental expenditures as has been done in the past year; and an additional $53 million largely for short-term developmental assistance, which would be provided for specifically approved projects.

Iran has not yet fully developed its own plans for economic development although it has submitted proposed projects to the Export-Import Bank for preliminary considerations. Some time, however, will be required for Iran fully to prepare project plans and establish priorities among them, and for the bank to make its required investigations. Of the above $127.3 million, $85 million is being offered in the form of loans, the balance in grants; $15 million of the latter has already been allotted on an emergency basis.

With this assistance the Iranian Government will be able to finance essential Government operations as well as develop and initiate a sound economic development program.