File No. 761.91/53

The Consul at Teheran ( Southard ) to the Secretary of State

[Telegram]

Referring to the action taken five days ago by the Persian Government in abrogating all existing Russian treaties and concessions. Members of Persian Cabinet have expressed to me their desire that American interests [be] informed of the favorable [opportunity] existing to apply for many of the Russian concessions thus canceled, and that American applications would probably be received with favor.

I am informed by a member of the Cabinet that in the meeting at which was determined the action with reference to Russian treaties and concessions, the question of taking similar position with reference to the British was seriously considered, but decided as inopportune because of their present occupation of Persia. Such action is considered, however, a future possibility.

Many Persian officials fear that European powers will nearly all misinterpret this act of Persia, particularly as the Russian treaty of Turkomanchai is that upon which the rights secured by most [Page 909] favored nation clause of many Persian treaties with other countries are created [based], and are particularly concerned that the American Government [be] informed of the real motives, which are to free Persia from treaty obligations deemed infringements of its sovereignty and to secure internal development in making concessions free to be given to those without political interests in Persia. The Legation will report fully on the abrogation act referred to.

Southard