891.515/104: Airgram
The Minister in Iran (Dreyfus) to the Secretary of State
[Received August 17—3 p.m.]
A–25. The Banque Mellie Iran has requested the Legation to ascertain whether the Federal Reserve Bank at New York will agree [Page 592] to convert monthly two million dollars of Iranian Government deposits in United States into gold bars and arrange with the army authorities for the transport of this gold to Iran. The purpose of the request is to avoid the considerable amount of telegraphing and routine involved in making arrangements for these sales of gold to Iran in each specific case. The Department will recall that one-half million dollars of gold was recently sold and shipped to Iran and that negotiations are now under way for the sale and shipment of bars worth one million dollars.
I am of the opinion that it would not be wise to commit ourselves to a continuing policy of selling gold to Iran and undertaking to transport it by plane. It would seem to me preferable to consider each application separately in the light of conditions prevailing in Iran, particularly taking into consideration the degree of cooperation being given by the Iranians to the American advisers. It is requested that the Department consult the Treasury with regard to this matter and inform the Legation of its decision.