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

888.2553/3–3054: Telegram

No. 448
The Ambassador in the United Kingdom (Aldrich) to the Department of State¹

secret
niact

London, March 30, 1954—7 p.m.

4250. Limited distribution. From Hoover.

1. At meeting with Fraser of AIOC today, De Metz of CFP stated French company would take participation in consortium of 6% though he had been under great pressure from French Government take full 8% or even more.

2. It important to note this reduced participation requested by CFP was freely arrived at by them, on basis of commercial considerations only.

3. US companies and Shell of opinion, with which I concur, that this participation should be accepted, even though it still unrealistically high.

4. If Department approves proposed decision, in making acceptance known to French Government it may wish to state through whatever channels are deemed most effective that we assume we will have full support of French Embassy in Tehran during forthcoming negotiations. This also excellent opportunity drive home any additional points we may need to make and smooth over ruffled feelings if still existing.

5. Department’s views, together with comments from Ambassador Dillon and Ambassador Henderson, appreciated soonest convenient as decision should be made known HMG here March 31.²

6. I tentatively planning leave London for Tehran April 2 in as much this phase of negotiations appears completed.

Aldrich

1. Repeated to Tehran and Paris.
2. On Mar. 30 the Department informed the Embassy in London that Hoover could inform the British Government that the Department had agreed that French participation in the consortium on the basis of a 6 percent share was acceptable to the United States. (Telegram 5055; 888.2553/3–3054)