891.51/573: Telegram
The Minister in Iran ( Dreyfus ) to the Secretary of State
[Received 7:38 p.m.]
686. My 661, June 25 and 672, June 29. Prime Minister summoned me today to inform me that he is now of opinion that only a straight American loan would be acceptable to Iran. He referred to peculiar background of Iran’s relations with her neighbors Russia and Britain and expressed the belief that a British loan would be unacceptable to people and Majlis and that a Russian loan would be “tenfold more unacceptable”. After my conversation with Prime Minister I discussed this development frankly with British Minister who said that Millspaugh had expressed to him much the same opinion. The Minister stated that British had become interested in the loan only out of desire to be helpful in the present financial crisis and expedite granting of loan in view of urgency of situation. He added that he sees no objection to extension of straight American loan if the American Government will agree thereto.
Iranian attitude is quite understandable when one considers the suspicion with which Iranians have in recent years regarded both Russians and British. Since I am convinced that Iranian financial structure will not survive next few months unless a foreign loan is extended it is hoped Department may find immediately some formula for meeting Iranian wishes for straight American loan.
Shah97 in recent conversation with me expressed surprise that any but a strict American loan should be under consideration.
- Mohammad Reza Shah Pahlavi.↩