Memorandum by the Assistant Chief of the Division of Near Eastern Affairs (Ailing)

The Iranian Minister1 called today on Mr. Sayre2 regarding the proposed American-Iranian trade agreement. The Minister stated that his Government had instructed him to point out the facilities which it was now according to the American automotive trade. In this connection the Minister stated that the Iranian Government was of course levying no import duty on American automobiles in the lower price class, that it had recently changed the method of valuing cars to the advantage of automotive exporters, and that it had abolished registration fees for automotive vehicles. Under the circumstances there was little that the Iranian Government could offer to the United States in return for a reduction of the American import duty on carpets. It was prepared, however, to reduce the amount of “exporters exchange”, which dealers were at present required to purchase, or, if the American Government insisted, the Iranian Government was even prepared to abolish the exporters exchange requirements entirely. (N.B. This is the first intimation we have had that the Iranian Government was willing to do away entirely with exporters exchange requirements. Reports from the Legation at Teheran indicate that the Iranian authorities there have offered merely to reduce the amount of exporters exchange.)

The Minister inquired whether, in view of the above considerations, this Government was willing to reduce the import duty on Iranian rugs. Mr. Sayre stated that he could of course give no assurances on this point until we had had an opportunity to study the question, but he assured the Minister that this study would be undertaken at the earliest possible moment. Mr. Sayre suggested further that the Minister furnish him with a written communication setting forth the statements which he had made orally. The Minister agreed to take such action.

  1. G. Djalal.
  2. Francis B. Sayre, Assistant Secretary of State.