Foreign Relations of the United States, 1952–1954, Iran, 1951–1954, Volume X

888.2553/3–2454: Telegram

No. 445
The Ambassador in the United Kingdom (Aldrich) to the Department of State¹

secret
priority

London, March 24, 1954—1 p.m.

4118. Limited distribution. From Hoover.

1. In further consideration of alternate proposal for solution of compensation matter, as tentatively suggested to Eden by us yesterday (Embtel 4104) following paragraph might be inserted to specifically include additional aspect our verbal reservations.

“e. Iran Government shall be advised, during course of negotiations, that:

(i) Iran shall have option of either arriving promptly at negotiated figure with AIOC, or submission to an international arbitration board. In either event final figure shall be between limits set forth above.

(ii) If Iran chooses submit matter to arbitration, all parties agree proceed with balance of negotiations; and if successful attempt obtain consummation of agreement and resumption of operations rapidly as possible without awaiting formal findings of award”.

2. Former paragraph e would then become paragraph f.

3. We believe conditional statement, such as outlined above, desirable if Department and Ambassador Henderson agree that proposed approach is suitable promise [compromise].

Aldrich

1. Repeated to Tehran and Paris.