891.24/215: Telegram
The Minister in Iran (Dreyfus) to the Secretary of State
[Received July 7—2:47 p.m.]
226. I appreciate helpful attitude outlined in Department’s 180, July 3.33 However, Department’s attention is called to fact that credits for the 24,230 tires were formally transferred to UKCC by Iran Government since latter felt itself impotent to obtain tires. Thus, entire 68,000 are consigned to UKCC, which states openly it will not give one tire or truck to Iranians to distribute, but rather will dole them out as it sees fit.
A deadlock has now been reached in my relations with UKCC and Transport Subcommittee of CSC over tires and trucks. UKCC stands fast in its attitude which may be summed up as follows: (1) UKCC has built a large and efficient transport organization in Iran which alone is capable of distributing and using tires and trucks efficiently; (2) trucks and tires delivered to Iran Government would be wasted and war effort harmed; (3) if an organization parallel to UKCC is set up by Iranians to distribute tires and run transport, there will be waste, destructive competition, and overlapping. CSC, with exception of American representatives supports UKCC fully.
My attitude remains unchanged. I feel British are treating Iranians in high-handed manner and that they are unfair in assuming Iranians are incapable of distributing tires equitably under foreign supervision. However, if we thus oppose UKCC and CSC, we are placed in position of suggesting workable alternative. Since time is important, would it not be possible to send immediately the American [Page 142] official mentioned in last paragraph of Department’s 180. This official might be able to reorganize and supervise the tire distribution and transport service already set up in Ministry of Finance. Further, if Iranians are to get any of the 68,000 tires, steps will have to be taken to consign part to the Legation or earmarked for Iranian Government rather than all to UKCC.
Iranian transport problem is urgent and present problem of moving harvest and goods cannot be solved by delivery of tires after several months. I am confidentially informed UKCC have 14,000 tires in stock, but since these are reserved for essential war work, there is little hope of any being turned over to Iranians.
I have suggested to Iranian Government that the immediate problem might be met by using the plenary powers they now hold in transport field to requisition tires which have found their way into black market, where they sell for up to $2,000 each, and [in?] hands of hoarders, and to requisition trucks not now doing essential work. The Iranian Government has been weak in these internal matters and should be required to help itself before turning to us. I should appreciate a frank expression of Department’s opinion concerning merits of this dispute and as to its possible solution.
Since drafting above, I have talked at length to Finance Minister who said he was grateful for information contained in Department’s No. 180 which he used to good advantage in Majlis today in supporting the Government’s position. He expressed great irritation at treatment being given Iran by British. He especially resented recent case in which British military “stole” 3,000 tires which arrived for Iranian Government (part of tires originally shipped on Steel Navigator). He needs these tires badly and intends to make strong representations to British Government. He added that the Automobile Section of his Ministry is already equipped to handle problems of tire distribution and transport and that he would welcome an American to supervise it.
- Not printed; it transmitted a summary of the Department’s aide-mémoire of July 1, supra, with an additional paragraph with regard to sending to Iran an American representative to supervise distribution of supplies from the United States (891.24/195).↩