891.00/1938: Telegram

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

361. British Minister informs me British Intelligence officers have uncovered widespread plot by German agents to seize power and commit sabotage in case Germans near Iran. Plot is alleged to have been discovered as result of seizure of documents belonging to a German named Meyer. British commanding officer Iran said to have asked London for permission to take action at his discretion.

Situation here is already so critical that should attempt be made by British to arrest large number of prominent Iranians said to be involved in this plot Qavam Government would probably fall and conditions become so chaotic military occupation of Tehran would be inevitable.

It is not beyond realm possibility that British have exaggerated or manufactured this plot as excuse for military occupation of Tehran (see last paragraph my 359, November 4).