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

888.2553/5–2854: Telegram

No. 468
The Secretary of State to the Embassy in Iran¹

secret
priority

Washington, May 29, 1954—2:31 p.m.

2337. Department considers it essential Shah have no doubt regarding firmness United States support Zahedi and our deep concern at indications Shah may be considering change government present time. We fully endorse line you have taken with Shah and Ala (your telegram 2418 repeated London 733²) and urge you use every means maintain Shah’s cooperation with Zahedi government.

… Hoover gave opinion Zahedi government prepared make oil agreement while many Shah’s advisers such as NIOC officials were reluctant and obstructionist in attitude. Serious risk therefore if Zahedi government fell that new government would be less willing make reasonable oil settlement and Shah’s irresolution would continue. In this connection Byroade made point that “make or break stage” seems to be approaching when we must be prepared take strong line with Shah who is key to Majlis acceptance agreement. It is particularly important therefore that United States … give … firm advice to Shah at this stage.…

Dulles

1. Repeated to London. Drafted by Stutesman, cleared with Hoover, and approved by Jernegan.
2. Document 466.