891.516/171: Telegram

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

727. Department’s 226, May 7.99 Millspaugh and Director of Banque Mellie request Department to endeavor to arrange for the conversion into gold and shipment to Iran by air of one million dollars [Page 584] of Iranian Government deposit in Guaranty Trust Company terms and conditions to be similar to those of previous shipment. Cable reply requested.

For the Department’s information British sales of gold in Iran are proceeding sucessfully. Daily sales are limited to 8,000 sovereigns although there is demand for more. Rate today is 550 rials per sovereign. Since present British stock of 100,000 sovereigns will soon be exhausted additional 200,000 are being brought from Cairo. Bazaar reports point to steadying of prices, perhaps partly as result of gold sales. Bar gold imported by Iranian Government from United States is being minted into gold pahlevis for sale under similar conditions as British coins.

Dreyfus
  1. Not printed: it transmitted a message from the Federal Reserve Bank of New York to the Banque Mellie Iran (891.516/165a).