891.51A/191: Telegram

The Chargé in Persia (Murray) to the Secretary of State


124. No. 10, July 31 from consulate. In attempt to find way out of impasse in dispute between American mission and Persian [Page 538]Government, I have urgently advised Millspaugh to give way in his demands (1) that contracts of American officials be terminated and salary advances paid before he will entertain proposals to remain in Persia, (2) that funds assigned out of revenue to Ministry of War be diminished. It is my opinion that to persist in first demand will prejudice chance of keeping mission in Persia or of engaging another, as foreign influences would be sure to make difficulties. To persist in second would bring to an end the cooperation of the Prime Minister and would in consequence destroy any hope of success.

Since Ministry rejected Millspaugh’s offers of compromise I suggested attempt to prevail on Prime Minister to exert his influence strongly in Medjliss for passage of fiscal measures which have been pending for over half a year.

Yesterday I sounded Prime Minister on above and was assured of his full cooperation.