891.77 Ulen & Company/4

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

interview of ulen company representative with prime minister

Referring to my report of January 22, 1924, entitled “Cooperation of Sinclair Exploration Company and Ulen Company in Persian Bond Issue”, I have the honor to inform the Department that Mr. Bennett interviewed the Prime Minister, Reza Khan, yesterday morning. He stated that his firm was interested in the construction of public works for the Persian Government and requested that the Government inform him of its intentions, and as to just what projects it desired to accord priority of construction. Reza Khan, of course, lost no time in enlarging upon … the construction of a railroad to a Persian Gulf port; the Prime Minister declared that he would be most happy to enter into relations with a reputable American Company with a view to its realization.

Mr. Bennett specifically inquired whether the field was clear and whether any obstacles existed in the way of prior concessions or options. The question of the British controlled Persian Railways Syndicate’s existing option on both the Mohammerah–Khoramabad line and the Khanikin–Teheran line was raised. Reza Khan was inclined to regard them both as having lapsed; Mr. Bennett privately expressed to me his opinion that they would bear looking into, as well as his disinclination to undertake especially the southern railway project if any prior British claim existed which could be utilized as propaganda against the Persian loan which his company might desire to float in the United States in this connection.

Mr. Bennett, in concluding, requested of Reza Khan that the Persian Government apprize him of the specific project which it had in mind, in order that he might transmit same to his company.

He also asked the Prime Minister whether he would be disposed to sign a preliminary contract for perhaps six months duration, in the event that the Government’s offer was adjudged to be practicable, and Reza Khan stated that he had no objection to so doing.

Within the next day or so, I hope to have in my possession certain correspondence between the Persian Government, the Persian Railways Syndicate (holders of the so-called option), the text of the 1920 option on the construction of the Khanikin–Bagdad route, and several letters of Prince Firouz, former Persian Premier, of which [Page 557] I shall send copies15 to the Department, which, I do not believe, has as yet had this information communicated to it.

Respectfully submitted

Bernard Gottlieb
  1. Not printed.