891.5018/6: Telegram
The Minister in Iran ( Dreyfus ) to the Secretary of State
[Received 2:59 p.m.]
271. Department’s 217, August 19. Following answers to Department’s numbered paragraphs.
1. Wheat. See my number 251 August 5. It is doubtful if there is an actual wheat shortage in Iran. The problem is primarily an internal one of collecting in rural areas and distributing to urban areas wheat crop which has just been harvested. Iran is normally self-sufficient in wheat and this year’s crop is on whole fair. The Government has been delinquent in locating the wheat and making the hoarders disgorge and hence a serious shortage in urban centers has developed. Other [Rather?] than take strong measures [to] correct this internal situation the Iranians prefer to have Allies ship 100,000 tons of wheat which will cause prices to fall and hoarders sell. British Legation in note to Prime Minister August 19 takes stand that Allies have fulfilled their obligation by providing Iran with 80,000 tons of wheat which carried them over to the harvest, that since present harvest is good the country should have sufficient wheat for all for the greater part of the coming year and that before turning to Allies Iran should take energetic steps to collect wheat and apply hoarding laws. On Iranian side it may be said that collection is extremely difficult under present circumstances and it may be impossible with the best of good will to obtain control of a large portion of the crop. For example the crop in Azerbaijan is excellent and should help in supplying the urban centers with the 350,000 tons a year they need but it is not expected Soviets will permit surplus to be shipped out.
My recommendation is that we support British stand and insist that Iranians take necessary measures to help themselves before asking us to provide vital shipping space for imports but that we keep an open mind as to necessity of later shipments if these measures fail to remedy situation.
2. Transport and distribution are important phases of wheat problem but it is believed they can be satisfactorily dealt with if basic problem of finding and obtaining control of wheat can be solved.
[Page 154]3 and 4. Active steps are being taken to solve transport problem.
Iranian Government has employed Birkle, formerly UKCC manager here and a transport expert, as director of transport and is now forming after much delay the transport board outlined in my 242, July 27. Iranian Government has obtained possession of part of the 3000 tires mentioned in my 242 but will need considerable stocks in near future. The 44,000 tires imported by British, part already received, are strictly for use of UKCC in war transport and can not be released for civilian use. UKCC has some 17,000 tires in stock and it may be possible for them to lend tires to transport board against eventual return from 24,230 allocated to Iran. Spare parts are being received to place laid up trucks in service. Trucks are not being received from any source. It is hoped that above measures will result in substantial improvement in transport picture.
5. CSC. See my Nos. 192, 204 and 214 of June 9, 18, 25. Iran Government has now called in all outstanding orders (those placed before June 21) and is in process of classifying and submitting them to CSC. So far two commodity groups have been presented to CSC which immediately approved them substantially as presented and passed them on to MESC whose action is as yet unknown. These included 16,000 tons sugar, 398 tons tea, 150 tons paper. Other commodity groups are in process of preparation and CSC is ready to deal with them as soon as presented. Future orders under quotas (see despatch 272 May 2842) will be dealt with as soon as outstandings are completed. It is my opinion that CSC and MESC are functioning energetically and efficiently with regard to Iran. Delays have been caused by Iranians first in approving import licensing system; second, in publishing notices; and third, in examining and transmitting outstanding orders to CSC.
Summary. Saleh’s statement that Iran faces critical situation is true but his inference that blame therefor lies entirely with Allies is unfair. It has been very difficult to get Iranian cooperation and there has been great delay, confusion and inefficiency on part of Iranian Government. Both British Minister and I have had to press Prime Minister repeatedly in above matters and our efforts are just now beginning to bear fruit. It will never be possible to satisfy Iranians fully in matter of supplies since they are unable to appreciate basic fact of acute shipping shortage.
- Not printed.↩