891.5151/211: Telegram

The Minister in Iran (Dreyfus) to the Secretary of State

258. Referring to Department’s instruction No. 31, August 12,6 the Iranian Exchange Commission has agreed in principle to the settlement of old accounts owed to American exporters and offers to authorize individual remittances at prevailing official rate of about 35 rials to the dollar. It has been learned informally that $50,000 have been set aside for this purpose.

The Department may wish to give appropriate publicity to the facilities now offered. American firms known to the Department or to the Department of Commerce might be advised that their Iranian debtors should apply directly to the Iranian Exchange Commission for exchange permits. In addition to the firms named in Legation’s despatch No. 21, January 23, 1941, and in the instruction above cited, the Consulate has learned that the Imperial Bank of Iran holds rial deposits for the credit of (1) Vulcan Spring Company, Chicago (2) McCord Radiator and Manufacturing Company, Cleveland (3) Neatherhead Company, Cleveland and (4) Perrine Quality Products Company, Waltham, Massachusetts.

Where a rial deposit is now held by an attorney or a bank the creditor should signify his willingness to accept payment at the official rate, preferably by wiring the Consulate here.

The Consulate will circularize known local debtors while the Legation will supply a list of known old accounts to the Exchange Commission to facilitate the issuance of exchange permits.

American creditors should take advantage of such favorable terms without delay since it has been intimated that present facilities will continue no longer than deposit.

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