891.51A/900: Telegram
The Minister in Iran (Dreyfus) to the Secretary of State
[Received November 14—1:17 p.m.]
1063. Department’s 455, September 8.5 Millspaugh says Majlis is not favorably inclined toward proposed stabilization agreement and, in view of his recent struggle over income tax bill,6 he is very reluctant to present another controversial project at this time. He believes Iranian Government can get along another 2 months at least without outside financial help and thinks it possible the agreement may never be necessary. Accordingly, he suggests suspension of negotiations reported in Departments 530, October 1 [13], be continued for the time being.7
I understand Majlis opposition is due primarily to a distrust of foreign loans in general and to doubt regarding necessity for a loan at this time, rather than to specific objections to terms of agreement as proposed by Treasury.
Please inform Treasury.
- See last paragraph of telegram No. 1303, September 8, to the Minister in Egypt, p. 597.↩
- For correspondence on this subject, see pp. 510 ff., passim. ↩
- For Department’s telegram No. 530, October 13, see p. 541; for correspondence relating to the situation precipitated by Dr. Millspaugh in submitting his resignation as Administrator General of Finances, see pp. 537 ff., passim. Under the stress of this crisis the loan negotiations were suspended, thus terminating also any further consideration of the proposed financial agreement.↩