891.51A/873: Telegram

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

1009. My 1008, October 20. Considering the satisfactory turn of events reported in my latest telegrams Millspaugh is willing to withdraw his resignation and those of his staff if the Majlis will pass the 600-man project and the income tax bill. Prime Minister states progress in committee was made in last session of Majlis on bills for employment of various Americans. Revised income tax bill appears to have been favorably received by the Majlis and there is every hope of its passage.

In view of the likelihood of continuation of the Financial Mission it is suggested that Department continue its negotiations with the various Americans under consideration and make tentative plans for their departure. Millspaugh strongly recommends and I agree that Shields58 should come forward without delay and without waiting to complete arrangements for employment of his assistants. This is suggested because the Road Transport Board was set up independently of Millspaugh Mission and in view of fact that transport, which is the keystone of most of our economic activities in Trau [Iran], is badly disorganized.

Repeated to Moscow for Jernegan.

Dreyfus
  1. Floyd F. Shields, American Director of the Iranian Road Transport Department.