Unnecessary Dollar Grants to Iran Under the Foreign Assistance Program

The General Accounting Office has reviewed the provision of dollar grant aid to Iran by the United States under the foreign assistance program. Our review was made pursuant to the Budget and Accounting Act, 1921 (31 U.S.C. 53), and the Accounting and Auditing Act of 1950 (31 U.S.C. 67). Our review was directed primarily toward an evaluation of the actions taken by the Department of State and the Agency for International Development (AID) in providing cash grants to Iran. We examined records and held discussions with responsible United States officials both in Iran and in Washington. United States aid to Iran, administered by the predecessor agencies of AID, began in 1951 as a modest technical assistance program but was increased substantially starting in 1952 when the nationalization of Iran?s oil industry brought on a serious political and economic crisis. Emergency aid, together with the cost of numerous economic and technical development activities, aggregated about $200 million during the 4-year period 1952 through 1955. During the subsequent 5-year period 1956 through 1960, economic assistance totaled $169 million, of which $131 million was for budgetary support. Total economic aid provided to Iran through June 30, 1963, amounted to about $800 million and surplus agricultural commodities valued at an additional $100 million were furnished under Public Law 480.