611.9131/95: Telegram
The Chargé in Iran (Engert) to the Secretary of State
[Received 12:30 p.m.]
17. Department’s 8, February 10, 6 p.m., and my 15, February 9, 10 a.m.53 Foreign Minister is not yet out of danger and recovery may take several weeks longer. Under Secretary has returned from Geneva and I have acquainted him with the substance of the Department’s 8. He doubts whether much can be done until the Minister is well enough to discuss the basic points upon which agreement is desired before negotiations are started.
[Page 762]The following are brief replies to the questions at the end of the Department’s telegram: (1) System has not been abrogated but its application somewhat liberalized; (2) new exchange control system does not affect trade relations with Germany and Russia; (3) present rate about 145 rials for future delivery 45 to 90 days; (4) basis seems to be relative marketableness of a given product. Only the list of third class merchandise has been published (see consular reports September 28 and November 29, 193754). Most of these articles are of little or no importance as exports to the United States. All others are in class 1 or 2 but categories have never been announced. Consulate learns informally that, for example, carpets and gum tragacanth would be in the first class and dried fruits in the second.
Please see also consular despatch No. 49, February 5, 1938,55 when it arrives. Papers this morning announce that paragraph 4 on page 2 of the enclosure has been amended to assist exporters still further by changing delay of 3 months to 12.