891.51/524: Telegram

The Chargé in Iran (Engert) to the Secretary of State

149. Legation’s 143, November 15, 11 a.m.16 The Minister for Foreign Affairs said to me last night that the British reprisals would [Page 542] hit Iran very hard as Germany owed Iran large sums in goods which were either en route or about to be shipped. He realized of course that some inconvenience and even privations were inevitable in war time but he hoped Iran’s legitimate needs and interests would be respected and that her right to commercial intercourse with Germany would be recognized.

The Minister then said the United States were now in a very favorable position to expand their business in Iran but that as Iranian exports to America could not of course be suddenly greatly increased available foreign exchange would soon be exhausted by purchases of heavy machinery, rails, planes, et cetera. He therefore thought it would be to the interest of both countries if a loan or credit could be arranged. As I had just received the Department’s mail instructions numbers 468 and 7017 I told him we could hold out little hope for the present. He expressed disappointment and said that as Great Britain naturally wanted to maintain her own exports at the highest possible level, credit agreements could perhaps be made in London especially if Britain showed willingness to take more Iranian products.

Engert
  1. Not printed.
  2. Neither printed. These instructions transmitted copies of memoranda of September 28 and October 4, respectively (pp. 539 and 540).