The Secretary of Legation and Acting Consul at Teheran (Murray) to the Secretary of State
[Received July 31—9:25 a.m.]
10. In conference with the Prime Minister yesterday Millspaugh, despite promises of former, insist[ed] upon settlement of contracts. It is latter’s idea that even if mission remains, present contracts which have proved ineffectual must be canceled and new ones drawn with radical changes including practically dictatorial powers in matters concerning budget and guarantee of support of Army. Administrator’s discouragement has been deepened by Imbrie killing and he has informed Prime Minister that funds must be laid aside to meet indemnity which it is expected the United States will demand and which he hopes will be determined without consideration of possible effect on mission. …
Ulen Company representative because of Imbrie killing refused to submit railway proposal at the expiration of option on July 27th and requested extension of 60 days which the Prime Minister reluctantly promised.