891.51/521
Memorandum of Conversation, by the Assistant Chief of the Division of Near Eastern Affairs (Alling)
| Participants: | Dr. Daftary |
| Mr. Murray | |
| Mr. Alling |
The Iranian Chargé d’Affaires called again today to discuss the question of the loan of $15,000,000 which his Government desired to [Page 541] obtain in the United States. Dr. Daftary stated that he had now received a letter from Mr. Warren Pierson, President of the Export-Import Bank, saying that the Bank would be unable to consider the possibility of extending credits to American exporters on shipments to Iran inasmuch as no funds were available at the present time. Dr. Daftary added that he was greatly discouraged at the prospects since his recent trip to New York had shown him that it would be impossible to obtain a loan through private banking channels.
Mr. Murray inquired what steps Dr. Daftary had taken in New York and the Chargé replied that he had called on Mr. Morgan Shuster who had told him that it would be out of the question for Iran to obtain a loan in New York under existing conditions. Mr. Shuster agreed, however, to communicate with some of his banking friends with a view to confirming his opinion. He had made such contacts and the result was as anticipated; that is, all consulted agreed that an Iranian loan was impossible. Dr. Daftary then consulted Dr. Leland Rex Robinson, a financial expert, lecturer at Columbia University and an old friend of Iran. Dr. Robinson fully confirmed the information which Dr. Daftary had obtained from Mr. Shuster. In the circumstances Dr. Daftary said that he thought it undesirable to approach any bankers since he knew in advance what answer he would receive and since he did not wish to have it known that his Government was seeking a loan in this market.
Dr. Daftary then inquired whether the Department could not assist him further by asking the Office of the International Economic Adviser to give him advice. Mr. Murray replied that the Department could not, of course, assist foreign governments in obtaining loans in this country, that the Economic Adviser had already been consulted, as a result of which the Iranian proposal had been laid before the Treasury and the Export-Import Bank, neither of which was in a position to be of service. Mr. Murray added that Dr. Daftary’s own investigations in New York must have convinced him of the futility of obtaining a loan through private channels and that there seemed to be nothing further that he could do except to report the facts to his Government. Dr. Daftary reluctantly accepted this conclusion.