891.51/582a: Telegram
The Secretary of State to the Minister in Iran (Dreyfus)
Washington, July 22,
1943—1 p.m.
357. Treasury in considering methods by which a loan might be made to Iran wishes following information:
- 1.
- Please confirm again that, in event a dollar loan is made, Iran would utilize loan by issuing rial currency.
- 2.
- Would dollars or gold be held in New York as backing for such rial currency?
- 3.
- Please also confirm that the legal reserve requirement against additional currency is 100 per cent in gold or dollars. Would this requirement remain unchanged?
- 4.
- Is there any legal reserve requirement, whether rials, gold, or dollars, against rial deposits in the Bank Mellie Iran?
- 5.
- Is there any limitation on the right of the Bank Mellie Iran to hold rial deposits for foreign governments or central banks?
Hull