891.77/725: Telegram

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

437. Department’s 179, April 13. British Minister informs me that Russians here were notified at the very outset of fact of Americans taking over operation of southern section of railway. When I brought to his attention the contents of Department’s above-mentioned telegram he telegraphed Foreign Office suggesting that this matter be taken up in London. He feels there is little possibility of reaching an agreement in Tehran and states “There is nothing further we can do here and matter must be settled on a higher level”.

[Page 448]

Present situation is as described in paragraph 2 of Department’s 179. I agree that clarification of this matter is desirable but suggest that negotiations can best be carried on between the Russians and British in London and Moscow.

Repeated to Moscow.