891.6363 Standard Oil/13

The Acting Secretary of State to the Minister in Persia (Caldwell)

No. 176

Sir: Reference is made to the Department’s telegram No. 27, dated November 17, 1920,9 relative to the possible confirmation of the Anglo-Persian Agreement10 by the Persian Medjlis and its possible bearing’s upon the petroleum situation in the northern provinces, to the Department’s mail instruction No. 163 of November 11, 1920,11 relative to the possibility of the extending of financial assistance by American private interests to Persia, and to your telegram No. 45, of December 4, 1920,11 stating that you have discussed petroleum matters confidentially with the Persian Prime Minister and Minister of Foreign Affairs and that you believe it advisable that any interested American company should have a representative in Teheran as soon as possible.

In an interview at the Department on December 16, 1920,12 the Persian Minister at Washington stated that he was making efforts to obtain permission to visit Persia soon, and that during his stay in Persia he would work for the granting of an oil concession in the northern provinces to American interests.

At a conference at the Department on January 11, 1921, Mr. E. J. Sadler of the Standard Oil Company of New Jersey stated that his company was not prepared at present to send a representative to Teheran or to interest itself in the matter of extending financial assistance to Persia.

[Page 641]

When the Department receives further information regarding the plans of any American company relative to petroleum concessions in Persia, you will be informed. You are requested to keep the Department fully and promptly informed regarding any developments in connection with this subject or with the Anglo-Persian Agreement. You are requested further to transmit to the Department such detailed statements as are readily available of the revenues and disbursements of the Persian Government during the past decade, an exposition of the public debt situation, a discussion of projects for new taxes, financial commitments and pledges to foreign governments, and the possibility of obtaining as security for future loans pledges of any particular sources of revenue, such as customs receipts. In obtaining this information you will take care not to convey the impression that this Government or American private interests propose or favor any financial arrangement with Persia.

I am [etc.]

For the Acting Secretary of State:
Van S. Merle-Smith
  1. Ibid., p. 355.
  2. For previous correspondence regarding the Anglo-Persian Agreement, see ibid., pp. 344 ff.
  3. Not printed.
  4. Not printed.
  5. See memorandum of Mr. A. C. Millspaugh, Office of the Foreign Trade Adviser, Dec. 17, 1920, Foreign Relations, 1920, vol. iii, p. 356.