Office of the Historian

891.5151/229: Telegram

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

Tehran, May 3, 1942—noon.
[Received May 3—9:49 a.m.]

137. Referring to my No. 127, April 29, noon. British Legation acting under instructions and Iranian Government have reached tentative and informal agreement along following lines:

(1)
Iranians to guarantee supply of rials to be issued against sterling holdings.
(2)
British to convert sterling into gold to meet Iranian dollar imports.
(3)
British to convert 35% of remaining Iranian sterling holdings to gold.
(4)
Exchange rate to be fixed at 32 rials per dollar and 128 per pound.

[Page 311]

Council of Ministers last night approved the plan but requested alteration of exchange rate to 124. British [Legation] has telegraphed foregoing to London and awaits final instructions.44

Dreyfus
  1. A formal financial agreement between the United Kingdom and Iran was signed at Tehran, May 26, 1942.↩