891.51A/593: Telegram

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

400. Department’s 182, April 15, and my 384, April 14.22 Foreign Minister informs me he has instructed Minister in Washington to assure Department of intention of Iranian Government to support American advisers. In further conversations with Prime and Foreign Ministers I have received similar assurances. Shah sent Ala23 to me yesterday to convey his promise of support for advisers particularly his intention to push bill for Millspaugh’s powers and contracts for Schwarzkopf and Timmerman. In return Shah asks my help in (1) increasing imports into Iran24 especially, of trucks, and tires, (2) holding down to minimum Allied purchases in Iran, (3) reducing Allied expenditures in Iran in order to prevent inflation, and (4) introducing gold into country as anti-inflationary measure. I promised Ala to do all possible to support these worthwhile measures and took opportunity to explain to him some of the steps already being taken to bring them about.25

I am pleased that Iranian Government has accepted our representations in friendly spirit in which intended and has reacted to our suggestions in such a favorable manner. We should continue to watch situation closely to insure that promises are translated into deeds without undue delay.

  1. Latter not printed.
  2. Hussein Ala, Minister of the Court.
  3. For correspondence relating to this subject, see pp. 600 ff.
  4. For correspondence relating to financial problems, see pp. 561 ff.