891.24/222: Telegram

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

242. I appreciate helpful views expressed in Department’s 192, July 25. I am glad to report UKCC shows signs of abandoning obstructive tactics in favor of friendly cooperation and that negotiations are proceeding in more cordial atmosphere. UKCC yesterday formally informed Ministry Finance that it consents to immediate delivery to Iran Government of the 3000 requisitioned tires (see paragraph 2 of Department’s 192).

American and British Legations have prepared memorandum which will be delivered to Iran Government tomorrow suggesting solution along following lines:

(1)
A transport committee will be set up in Ministry of Finance headed by Iranian official with rank of Under Secretary. American and British representatives will sit on the committee and no objection will be raised to Russian inclusion if desired. Duties of committee would be (a) to organize and supervise Iranian transport, (b) submit to DSC Iranian request for tires, trucks and parts, (c) supervise tire distribution and consider gasoline rationing, (d) prepare legislation to give effect to its findings and (e) explore possibility of increased use of animal transport.
(2)
UKCC would restrict its transport activities to (a) goods to Russia, (b) British military needs and (c) Polish military and civil needs. UKCC has expressed approval of plan and offered cooperation. I feel certain Iranians will be pleased to accept plan perhaps with some modification.

This arrangement if successfully carried out would I believe go far toward solving Iran’s transport problem. Iranians would receive as many of the tires and trucks consigned to UKCC as the committee, on which they would be heavily represented, believe necessary. British Minister has already telegraphed for British expert to serve as technical member of committee and he suggests we do same. Meanwhile British Commercial Secretary and Minor will sit on committee. [Page 151] I suggest expert mentioned paragraph 4 Department’s 192 be sent soon as possible to assist in this work.

Dreyfus