391.1164/134: Telegram
The Chargé in Iran (Engert) to the Secretary of State
[Received May 17—noon.]
110. A note in the sense suggested the last paragraph of the Department’s 35, April 3, 8 p.m., was addressed to the Foreign Office on May 9. No reply has been received but the American negotiators were yesterday informed by the Under Secretary for Foreign Affairs that the Cabinet had decided not to purchase the school properties after closing the schools but to let the Mission dispose of them as they pleased. If they wished to sell to the Iranian Government the latter [Page 697] would have the properties appraised and pay the price in rials in one payment. Or they could sell to private Iranian or foreign nationals. The reason he gave was that the Iranian Government had no foreign exchange with which to buy the school.
As the Government could of course easily influence any prospective private buyer either not to bid at all or to offer less than the Government, this decision would seem to be tantamount [to] a forced sale to the Government at its own figure. I shall await your instructions before discussing the above with Government officials.
Please inform Mission Board.