891.5151/229: Telegram

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

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.