891.24/220: Telegram
The Minister in Iran (Dreyfus) to the Secretary of State
[Received 8:45 p.m.]
238. Reference my No. 226, July 7. Relations between Iran Government and UKCC over matter of tires is approaching breaking point. At a meeting Saturday attended by delegates of Ministry of Finance, UKCC and Minor a high Iranian official found it necessary in describing UKCC activities to use such expressions as abuse of confidence, dishonest and unfair treatment. He took violent exception to what he called theft of tires by British (my 226) and said that strong and formal representations will be made to British Legation on subject. Specific question now at issue is disposition of 24,230 tires ordered by Iran Government credits for which were delivered to UKCC. Iran Government insists that UKCC acted only intermediary for obtention of tires for Government while UKCC state tires are theirs and that they will retain and distribute them. Result of UKCC viewpoint if carried would be to place Iran Government at UKCC mercy.
General British attitude in this and other matters is one of destructive criticism of Iranian competence and honesty rather than one of constructive suggestion, a condition of mind which has contributed in no small degree to British unpopularity here. I took matter up yesterday with recently returned British Minister. While he is unduly critical in general of Iranians he seeks a solution on a broad and fair basis. He reacted favorably to a plan suggested by Ministry of Finance under which tires and trucks would be distributed by that Ministry under supervision of a joint Allied-Iranian committee and stated he would support idea in a meeting he is having with UKCC today.
I feel that due largely to UKCC obstruction and deception we are fiddling while Rome burns. Iranians are in a desperate position for road transport and will be unable to move corps [crops] without outside help. I venture to suggest following specification[s:]
- (1)
- That we approve distribution of tires and trucks by Ministry of Finance under CSC direction
- (2)
- that we suggest return of tires belonging to Iran Government which [were] requisitioned by British Military, a political act instigated by UKCC
- (3)
- that we consign the 24,230 tires to Iran Government in care of this Legation or CSC
- (4)
- that American expert to supervise distribution of American goods be sent to Iran without delay in order to assist in this matter and
- (5)
- that representations be made to British Government with a view to obtaining UKCC cooperation with Iranian Government in place of its present attitude of obstruction.