891.24/221: Telegram

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

240. Reference my 238, July 20. Sir Frank Nixon, London director of UKCC now in Tehran, has intervened personally in difficulties between UKCC and Iran Government. He called on me yesterday to explain his action and viewpoint. He admitted that great mistakes had been made by UKCC in Tehran, especially in riding rough shod over Iranian susceptibilities, and that he now plans to correct these errors. He has begun by reorganizing the company, dismissing some, transferring others, and taking two of most objectionable out of jobs where they have contact with Iran officials. He has called on Dramini, a leading official of Ministry of Finance, to apologize for his employees [Page 147] and to offer cooperation in future. He states he and his new transport manager favor establishment of Allied-Iranian Committee to supervise distribution tires and trucks and that they will give all possible cooperation.

In view of above I recommend we await further developments before making representations I suggested in (5) of my No. 238.

Dreyfus