891.02/25: Telegram

The Acting Secretary of State to the Chargé in Iran (Engert)

119. In connection with the proposed trade agreement, the Department is endeavoring to formulate a mutually acceptable provision ensuring fair treatment for American products in Iranian Government [Page 690] purchases and for American suppliers and purchasers in their transactions with Iranian Government monopolies or other business organizations under Government control in law or in fact. Reference is made to the Legation’s despatch No. 1825 of May 2, 1940,88 from which it appears that a foundation was laid for the reorganization of business enterprise controlled by or connected with the Government. However, we lack a picture of the present situation.

Please prepare immediately in cooperation with the Consulate and forward by airmail a report describing the types and activities of the above-mentioned organizations, legal background, importance in the Iranian economy and to American trade as compared with purely private enterprise, and discrimination against American trade.

Welles
  1. Not printed.