891.51A/373: Telegram

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


44. Crisis over contract is becoming acute in opinion of Doctor Millspaugh and myself. He expects to address to Prime Minister at once an explanation of his objections to the contract as drafted, and he requests that I call upon Prime Minister and Shah as soon as he has submitted his prepared statement.

Will the Department empower me to say to the Shah that the Government of the United States is disturbed by information that the American Administrator General has not been accorded a friendly participation in the drafting of a new contract, and that when his departure was already imminent he received proposals which were immediately published and by which his whole past administration of Persian finances seemed to be discredited and his position made otherwise more difficult.