891.6363 Standard Oil/427: Telegram

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

11. My 6, January 11, 3 p.m. I called on the Prime Minister this morning at his request and he told me that for “political reasons” he [Page 661]had been obliged to give a negative reply to Standard Oil application. However, he had given the matter much thought since then and felt the Government should reconsider its decision. He then referred to our conversation reported in my 9, January 16,54 and said that if a concession could be granted in connection with a loan and closer general economic ties with the United States55 there would be no danger of its being interpreted by third parties (presumably the Soviets) as a political move.

He suggested Anderson who left January 14 be recalled but I told him I hesitated to do so unless a more definite proposal could be submitted to him. Instead I promised to suggest to the Department that his general idea be conveyed to the Standard Oil Company of New Jersey.

I gained the impression that the Shah was personally much interested and that if the company could arrange for a loan a concession could probably be obtained on favorable terms.

  1. Post, p. 663.
  2. For correspondence on this subject, see pp. 638 ff.