891.24/218: Telegram
The Minister in Iran ( Dreyfus ) to the Secretary of State
[Received July 18—8:50 p.m.]
237. Reference Department’s Nos. 80, April 1,34 94 April 21, and 115, May 5;35 and my Nos. 97, April 636 and 224, July 7 [6].37 Wheat situation has become more critical with resultant acute shortage of bread. Since stocks on hand in Tehran are adequate for only few days [Page 143] Government is urgently endeavoring to uncover stocks in provinces to tide country over until new crops harvested. This situation as suggested in my No. 25 [225], July 7,37a is one of main causes of present political crisis.
British Legation, Tehran, has maintained up to present a rather intransigent attitude taking view that the 60,000 tons imported are sufficient, that no wheat should be furnished Iran after the harvest and that Government should requisition stocks alleged to be in hands of hoarders before requesting imports. Iranians have taken view that arrivals have been inadequate, that 100,000 tons will have to be imported before 1943 harvest and that relatively small stocks are in hands of hoarders. Iranian views as to hoarding has been proved substantially correct by recent investigations which failed to reveal large stocks in hands of persons designated by British. British Legation in staff memorandum takes stand that Iranians are largely responsible for present situation by failing to bring true facts to its attention. This explanation is in my opinion weak since Iranians have frequently pointed out to Allied representatives the urgency and seriousness of the matter.
British now recognizing seriousness of situation, are lending Iran 5600 tons of wheat from military stores to be repaid by wheat purchased by Saleh and now en route.
They also are trying to obtain one five thousand tons of barley to be mixed with wheat for bread. Soviets have promised to return 3000 tons of wheat they borrowed. These measures will assist in tiding country over until new crop is harvested during July and August. The transport problem is grave (see my 226, July 7); Iranian transport is so depleted that crops cannot be moved unless UKCC furnishes tires.
British Minister has proposed to me and Soviet Ambassador formation of an Anglo-American-Soviet-Iranian food committee to handle matters of this kind and has suggested that an Iranian Ministry of Food be established. Soviet Ambassador does not favor the committee but has consulted his Government. For my part I feel such a committee would be useful but that it might better be formed as a subcommittee to CSC. A definite step forward would be afforded by designation and early arrival of American food adviser the Department is seeking for Iranian Government.
As to future wheat needs for Iran, I recommend an open mind until the harvest is finished. If crop is normal it may be possible under guidance of competent food adviser to squeeze through next year without imports. We must, however, carefully watch 1943 crop indications since a crop failure then might result in wide-spread famine.