391.1164/136: Telegram

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

116. Department’s 61, May 24. Following from representatives to the Board:

“Government’s decision thoroughly disliked and quite contrary to Minister of Education’s letter last August and subsequent conversations. Government is closing schools but has so far evaded all questions [Page 698] as to price at which it would be willing to purchase, time limit and possibility of obtaining any foreign exchange whether properties sold to the Government or private individuals. Government unwilling to buy some properties and not others and in any event properties oner would presumably be totally inadequate and probably ineffective because in rials. Intervention of our Government essential to enable us to secure bids from Iranian Government with permission that mission retain without time limit for use or private sale such properties or portions as desired. Strongly urge Board now take initiative by requesting State Department to intervene in that sense and also to endorse reservation of right to following possible claims against Iranian Government:

1.
Loss on land sales if time limit forces quick sale or if fair sale prevented by Government attitude or refusal to guarantee unhindered possession to purchaser;
2.
Loss on building sales because of forced sale in market lacking adequate offers because unsuitable for ordinary use;
3.
Loss because of failure of Government to provide adequate exchange facilities;
4.
Travel of regular American teachers to new fields of work with salary compensation for reasonable interim;
5.
Travel home or to new location of American contract teachers with adequate compensation for broken contracts;
6.
Retiring allowances for Iranian teachers serving 10 years or more;
7.
Expenses of negotiating commission and any subsequent litigation expense;
8.
Interest on any delayed payments by Government.”

Engert