891.24/203: Telegram

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

192. Reference my No. 175, May 29. Central Supplies Committee has held first meeting and appointed permanent subcommittee and transportation subcommittee which also have had first meetings. Committee is endeavoring to induce Iranian Government to introduce effective July 1 import licensing system which is considered necessary to proper functioning of MESC. Iranians will I believe consent to system of import licenses but they object to small quotas established (see despatch no. 272, May 2820). However Committee is prepared to discuss quota increases if adequate reasons advanced.

There is danger that British are endeavoring to use Committee to further British trade. In addition to selfish attitude of UKCC which I have reported, following serves as an example. Yesterday agent of Socony Vacuum complained to me he cannot continue to import lubricants because Committee have given Anglo-Iranian Oil Company a monopoly for importation from England.

I explained to Hobson (sent here from MESC Cairo to head Central Supplies Commission) that under no circumstances should the Committee be used as a trade or political football and he agreed consider question of lubricants at next meeting.

UKCC are still intent on obtaining monopoly on import and distribution of tires, trucks and parts. Prime Minister told me he is unwilling to submit to UKCC control and he said confidentially that the Soviet Ambassador feels similarly. Prime Minister said he hopes soon to obtain from Majlis plenary powers for control of both food and transportation.

For the Prime Minister’s information I should appreciate following details with regard to Lease-Lend.

(1)
Is a formal agreement with Iran contemplated and
(2)
How will Lend-Lease fit into MESC picture.
Dreyfus
  1. Not printed.