891.20/218: Telegram

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

620. Department’s 282, June 9. Iranian law specifically provides that in all contracts for engagement of foreigners Iranian Government must stipulate that contract may be canceled if person concerned engages in political activities or violates law or administrative regulations. Elimination of the clause from contracts would be illegal and I do not believe it wise at present to request Iranian Government to amend its law. It is extremely unlikely that Iranian Government would invoke this clause and if it were done the incident could undoubtedly be satisfactorily settled through diplomatic channels. General Ridley and Colonel Schwarzkopf have no objection to inclusion of the clause in their contracts.

Law engagement of Schwarzkopf mission is now pending in Medjliss. Law on employment of Ridley Mission will be presented as soon as draft contract enclosed with despatch number 588 [558] May 20 is agreed upon.