891.51A/864: Telegram
The Minister in Iran (Dreyfus) to the Secretary of State
[Received October 15—11:18 a.m.]
999. Millspaugh presented his resignation to Prime Minister yesterday at noon just before having received the information contained in Department’s 527, October 12. His resignation was accompanied by those of 14 American members of his staff which comprises all American members except 3 who were not in Tehran at the moment.
Millspaugh asks that following paraphrased explanatory remarks be transmitted to Department:
“I believed I had discussed the matter frankly and fully with the Legation and I understood the Department had been informed that unless conditions improved the Mission might have to leave. It was also agreed that the situation would be hopeless unless the Majlis passed the 60 man and the income tax projects. I told the Financial Laws Commission some time ago that I would be unable to carry on my work unless the Majlis passed the income tax project. The project has now been emasculated by the Commission. In view of accumulating obstruction and opposition I feel convinced the time has come for drawing the issue and taking the strongest possible stand.
In placing responsibility on Majlis I believe that I am on solid ground. In case the Majlis passes these two projects I feel that the Mission’s prestige and chances of success will be increased. If it does not pass the projects, in my judgment the Mission is certain to fail. Even if the Mission should be retained here, it may be necessary that I resign in the near future for reasons of health. I believe the Department should be requested to find at once someone qualified to replace me.”
I have as yet received no Iranian reaction, official or private, to the resignations. Prime Minister has requested me to meet with him and Millspaugh this a.m. after which I will telegraph Department fully. [Page 543] I recommend that in our conversations with Iranians here and in Washington we stress that this step was taken because the Mission was placed in an impossible position due to lack of cooperation on part of Iranians.