891.51A/175: Telegram

The Minister in Persia (Kornfeld) to the Secretary of State

67. Department’s telegram 36, July 24, 6 p.m.13 Millspaugh advised me July 24 that he sent protest July 17. He alleges following violations of contract: Governmental expenditures of public funds without his approval, taking decisions on financial questions without consulting him, failure to give him opportunity of attending meetings of Council of Ministers when discussing financial questions, ignoring his recommendations regarding financial personnel over which he claims complete power, interference with his administration, et cetera.

Millspaugh maintains “when the Administrator General of Finances holds that an order on [or] an instruction of Government or of Minister of Finance is unlawful or contrary to his contract or the contracts of the other American administrators he will not obey. Within the limits of the jurisdiction prescribed in his contract he has full right to use his judgment to make any decision which he considers correct.” Millspaugh demands that he be permitted to [Page 532]do work without interference or obstruction, direct or indirect, not to be pressed to take action for special, personal, or political advantage of anyone, be permitted to exercise powers clearly given to them in their contracts and all violations shall immediately cease. If the Government does not accept these views mission requests to be advised immediately in order to discuss settlement of their contracts.

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