Foreign Relations of the United States: Diplomatic Papers, 1943, The Near East and Africa, Volume IV

121.5767/3: Telegram

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

Tehran, August 20, 1943—5 p.m.
[Received August 21—12:05 p.m.]

863. Department’s 380, July 29. For Morgenthau Treasury from Gunter.

• “1. The Iranian Government will need to obtain authority from the Medjliss to enter into stabilization agreement. A bill has been drafted and Millspaugh wishes to know if it will be satisfactory to the Treasury. Any suggestion will be appreciated. The bill has been made simple to assure its being understood and to facilitate its translation. The draft is as follows: The Ministry of Finance is authorized to enter into an agreement with the United States Treasury to obtain in case of need advances of United States dollar exchange up to an amount of $30,000,000 and to repay such advances according to the terms of the agreement. Advances under this agreement will constitute a revolving fund and will be used for the purpose of strengthening the currency of Iran and meeting the financial needs of the Government. The Ministry of Finance will authorize the Banque Mellie Iran to act as the fiscal agent of the Government in carrying out this law.
• 2. Millspaugh will have the bill introduced in the Medjliss if the Treasury is willing to enter into the agreement and wishes to be informed of Treasury’s decision through the Legation. If the decision is favorable the Iranian Minister in Washington will be instructed to negotiate with the Treasury. Drafts of the agreement should be sent to Iran both through the Iranian Minister and by the State Department. The Iranian Minister can be authorized to sign for the Ministry of Finance and for Bank Mellie.”

Dreyfus