711.91: Telegram

The Chargé in Persia (Engert) to the Secretary of State

35. During a recent audience with the Shah and conversations with the Minister of Foreign Affairs both expressed the hope that relations between the United States and Persia will become more intimate and that it will be possible to find American agricultural advisers as well as a financial expert to head a Persian bank. They also intimated readiness to grant liberal concessions for oil, railroads, mines, et cetera in return for loans and they invite American experts to explore the country and to negotiate regarding terms.

As the Persian Medjlis will be opened tomorrow and that body will presumably be favorably disposed toward American interests no time should be lost if we intend to participate in the economic development of Persia. I have so far always answered evasively but with a little encouragement it should be possible to accomplish a great deal.

The British appear to be reconciled to the fact that they cannot now hope for exclusive privileges in north Persia but in the interest of civilization it would be regrettable if the Persians gained the [Page 635] impression that we were particularly anxious to thwart British plan on general principles, an impression which the attitude of this Legation during the last few years has done much to create and perpetuate and which undoubtedly contributed towards rapprochement between Persia and Soviet Russia. For purely geographic reasons the British will always have a certain legitimate influence here which generally speaking is wholesome and serves as an antidote to Bolshevikism. If therefore American capital desires to invest in north Persia it might perhaps be advisable to sound London and possibly invite cooperation as otherwise the Persians are certain to try the time-honored Oriental practice of playing one against the other.

I understand the Persian Minister to Spain now in London will soon proceed to Washington to negotiate for American advisers and it is intended that he remain there as Minister.

Engert