891.24/222a: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
3475. In recent months our Minister at Tehran and Iranian Minister here have repeatedly called to our attention bitter dissatisfaction of Iranians with exclusive control exercised by UKCC over importation and distribution in Iran of tires, trucks and other essential articles. They have insisted that Iranian transportation needs were not receiving due consideration and that entire internal transportation system, which depends heavily upon trucks, was on the verge of breakdown which would have disastrous results. General attitude of UKCC toward Iranians was reported as overbearing and uncooperative. On July 20 Minister Dreyfus reported relations had reached breaking point over question of tire distribution and recommended that Department make representations to British Government looking toward modification of UKCC attitude.
On July 22, however, Dreyfus cabled that Sir Frank Nixon, London head of UKCC, was in Tehran and had intervened personally to direct adoption of a more conciliatory policy. Nixon told Dreyfus that UKCC had made great mistakes in Iran, especially in riding [Page 149] rough shod over Iranian susceptibilities, and that he planned to correct errors. He has reorganized corporation’s staff in Iran and has apologized to Iranian Finance Ministry for past attitude of UKCC employees. Nixon favors joint Allied-Iranian supervision of tire and truck distribution, which it is understood Iranians will accept and which is entirely acceptable to Department.
Consequently, Department has decided to await developments before taking up the question with the British Government. Please inform Foreign Office, however, that we feel that a greater degree of American participation in the distribution of supplies sent from the United States would tend to reassure the Iranians and enlist their cooperation in solving the many delicate problems involved, problems which are reported to have given rise to considerable friction between the Iranians and the UKCC. You should add that we are gratified to learn that very recently there have been indications of a UKCC policy of conciliation toward the Iranians, which we believe will have a good effect upon the serious economic and political situation. In view of its frequent suggestions that American advisers of various kinds be sent to Iran, we assume the British Government agrees with the viewpoint that American participation in supply distribution would be helpful. Accordingly, we propose to send to Iran in the immediate future an American representative to collaborate with the Iranian and British authorities in directing the distribution of all civilian supplies sent to Iran from this country in consequence of Iranian Government orders or Lend-Lease requisitions made by or on behalf of the Iranian Government. It is thought that it may be desirable to name a consignee other than the UKCC for such orders, but such a change would in no way affect proper distribution in the light of Allied and Iranian requirements. The American representative would, of course, work closely with UKCC and other British agencies in accordance with general policies determined by consultation between British, American and Iranian authorities, and we should be glad to discuss his instructions with the British Government.
In accordance with Iranian request, supported by British Government, we also hope to send a food and supply adviser for Iranian Government within next few weeks.
The procedure indicated above does not, of course, contemplate any modification of existing arrangement whereby Iranian import requests are to be submitted to Central Supplies Committee at Tehran and forwarded through Middle East Supply Center.
When discussing this with Foreign Office, please take occasion to mention informally a recent instance in which British military in Iran requisitioned 3,000 tires ordered by Iranian Government from United States. We are informed Iranians strongly resent this action [Page 150] and that they plan formal protest. You should indicate that this Government hopes that the Allied forces may find that, without jeopardizing their own requirements, these tires, or at least a portion of them, can be returned to the Iranians for distribution under Allied supervision. Such action, we feel, might have a very beneficial effect in terms of good will.