891.51A/9
Memorandum by the Assistant Secretary of State (Dearing)
The Persian Minister called upon me today to say that he had received urgent telegrams from his Government and that he would be obliged if we could name a financial adviser as soon as possible. It was requested that he be named without specific statement as to his powers because he was needed at once. The Minister indicated that his Government would accept any suggestion the Department might make with regard to salary and added that the functions, powers, etc., of the adviser could easily be arranged with the Persian Government as soon as he could be appointed. The Minister referred to the fact that his Government needed financial assistance at once and seemed to feel that it was chiefly on account of the need of paying the Persian Army. Later telegrams which he has left at the Department indicate a fear of the Government at present in power that they may lose control unless the Army is paid. The Minister indicated that while he had approached various bankers and oil men he had not been able to get very far with them.
He told me that the British had asked for the Khostaria oil concession5 for the Anglo-Persian but that his Government had replied with absolute finality that the concession could not be given to the Anglo-Persian Company and that it had reverted absolutely to the Persian Government. The Minister said that his Government had appealed to the British to help them in their financial situation but that the British had said they could do nothing and had practically invited them to seek assistance elsewhere. This would seem to indicate that there need not necessarily be much danger of treading on British toes if financing is arranged in America.