891.51/580a: Telegram

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

346. Both British Embassy and Iranian Legation have spoken to us about a short-term credit of 500,000,000 rials which Iranian Government is said to be seeking urgently in order to finance purchase of grain crop. It is understood this credit would be separate from the $50,000,000 loan previously requested.

British also say negotiations are nearing completion for an advance of 350,000,000 rials by Anglo-Iranian Oil Company to cover deficit in last budget.

Please report.

Hull