891.248/78: Telegram

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

50. Your 87, April 27, 9 a.m. [p.m.] and 88, April 28, 11 a.m.

The question of engaging American airplane production experts can doubtless be handled best by the Iranian Aviation Mission now in this country. If desired the Department will of course be glad to put the Mission in touch with the proper people.
It is our understanding that one of the original objects of the aviation mission was to make arrangements for the construction and equipment of an airplane factory in Iran. The Department is not informed of the progress that has been made along this line. The Iranian Minister is also without precise information as the Mission apparently operates independently of him.
The Minister is negotiating with the Export-Import Bank for a credit but he understands that the Bank, owing to legal restrictions, is unable to grant any credit whatever for military purposes. We understand that the Minister is also negotiating with a private New York bank for a loan the proceeds of which could be used for any purpose. The Minister has been told as clearly as possible, and it is desired that you emphasize the point to the Iranian authorities, that it is utterly impossible for the Department to bring influence or pressure to bear regarding such matters.
The Minister has been informed of the substance of your No. 88.