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

888.2553/4–454: Telegram

No. 451
The Ambassador in Iran (Henderson) to the Department of State¹

secret
niact

Tehran, April 4, 1954—1 a.m.

2051. Limited distribution.

1. British Ambassador, Hoover, and I discussed this evening London telegram Tehran 202 to Department 4343² and came to agreement regarding virtually identical text subject to approval Washington and London. In order facilitate matters Hoover and I decided follow text of draft incorporated London telegram to Tehran 198, April 1, to Department 4311³ unless we felt strongly changes should be made.

2. Paragraph 4 of original document (London telegram 198)⁴ as agreed upon here as follows:

First sentence as in original. Second sentence insert “by AIOC” after words “will not be claimed”. Third sentence reads “there remains, however, the problem of claims for losses and damages up to the date of the coming into force of the consortium agreement, including the fair value of the Kermanshah refinery, of the Naft–IShah oilfield, and of the internal distribution facilities, as well as of Iranian counterclaims”. (Both Embassies, however, willing to accept as substitute “there remains, however, the problem of claims and counterclaims for losses and damages up to the date of the coming into force of the consortium agreement”.) Fourth sentence: Substitute following for first five words: “It is understood that Her Majesty’s Government has assured the Iranian” (British statement will not include this change). Fifth sentence: “The principle of fair compensation is supported by United States Government, by Her Majesty’s Government, by all the members of the consortium, and, it is understood, by the Iranian Government.”

3. Paragraph 5 of original document has been altered somewhat. First sentence: “Both governments believe that every effort must be made to obtain a sound and lasting solution as rapidly as possible.” Second sentence: Last portion to read as follows: “to agree on an amount of net compensation to be paid which would dispose of this issue once and for all” (Hoover and I feel strongly that words “to the company” be omitted. We agreed reluctantly to inclusion words “of net compensation”).

4. Paragraph 6. No change first sentence, second sentence as follows: “These arrangements will provide for an agreed measure of conversion of Iranian owned sterling into dollars and other currencies.”⁵

Henderson

1. Also sent to London.
2. Supra.
3. Document 449.
4. Printed as telegram 4311, Document 449.

5. The Department approved the suggested revisions advanced by Ambassador Henderson in telegram 1997 to Tehran on Apr. 4. (888.2553/4–454) The Embassy in London reported on Apr. 5 that the British Foreign Office that morning agreed to the revised statement to be used by Henderson and Stevens in their parallel approaches to the Iranian Government. (Telegram 4353; 888.2553/4–554)

   Subsequently, Henderson reported on Apr. 7 that Ambassador Stevens, on instructions from London, made the following changes in the text of the parallel statement:

   “(a) end of first sentence changed from ‘their oil industry’ to ‘the oil industry’; (b) in third sentence fourth paragraph ‘including the fair value of the Kermanshah refinery’ changed to ‘and for the fair value of the Kermanshah refinery’ and (c) in same sentence words ‘the problem’ inserted before ‘of Iranian counterclaims’. British Ambassador desired but did not insist my statement be amended accordingly, and in view their minor nature I have made changes. Contrary procedure which I plan follow British Ambassador has incorporated entire statement in formal first person note to Foreign Minister with introductory paragraph reading:

   “‘I have honour, under instructions from Her Majesty’s Principal Secretary of State for Foreign Affairs, to convey to Your Excellency following communication from Her Majesty’s Government which has been drafted in agreement with Government of US.’” (Telegram 2078; 888.2553/4–754)

   The Embassy in London reported on Apr. 9 that since the Memorandum of Understanding was being signed that day by the American oil companies and AIOC, the Foreign Office was cabling Ambassador Stevens in Tehran to approach the Iranians along the lines of telegram 4311 from London and subsequent telegrams. (Telegram 4461; 888.2553/4–954) The Department on Apr. 9 instructed Henderson to follow suit. (Telegram 2044; 888.2553/4–954) Henderson, in turn, informed the Department on Apr. 9 that he and the British Ambassador in successive meetings with the Iranian Foreign Minister that evening had delivered the parallel statements. The Foreign Minister stated that the Iranian Government would be pleased to receive representatives of the consortium. (Telegram 2095; 888.2553/4–954)