891.51/571: Telegram
The Minister in Iran (Dreyfus) to the Secretary of State
[Received June 30—3:28 a.m.]
672. Soviet Ambassador departed yesterday for Moscow on leave. Despite explanations of British Minister and myself, he still maintained opinion that Iran is not in need of a loan. When he took leave of Prime Minister he said categorically that Iran does not require a loan because it has sufficient internal resources to meet its needs.
[Page 581]Ambassador’s attitude is hard to understand. Since he is usually well-informed, his attitude must spring from one or a combination of the following (1) wish to prevent Iran from becoming financially obligated to foreign nation (2) desire purposely to encourage financial and political chaos in order to speed breakdown of present system of government by entrenched classes and hasten eventual socialization of country and (3) wish to obstruct action which might contribute to success of American adviser program. It is significant that the Ambassador postponed indefintely two appointments to see Millspaugh.
Ambassador’s attitude regarding this loan is apparently in continuance of Soviet desire to play lone hand in Iran and policy of holding aloof from other Allies in Iranian internal matters.