891.6363/807: Telegram
The Minister in Iran (Dreyfus) to the Secretary of State
[Received November 16—3:22 a.m.]
1065. Iranian Government has received telegram from Dr. Nash of the Trade and Economic Commission saying that Standard Vacuum Oil Company is interested in obtaining petroleum concession in Iranian Baluchistan.
Prime Minister44 has told me that he would like to see a responsible American company given such a concession and suggested that the firm should send a representative to Iran to discuss matter. He asked that a message to this effect be transmitted by Legation through Department. I have told Millspaugh45 informally that it would seem better to have communications confined to Iranian channels and shall express same view to Prime Minister when I see him today on another matter.
I should appreciate an expression of Department’s view on general question of American firms seeking oil concessions in Iran at this time, together with any information available regarding nature of Standard Vacuum’s interest.
Seems to be no doubt that Iran Government would look with favor on United States participation in exploitation of Iran petroleum but I fear there is some danger that any immediate steps in this direction, especially if supported positively by United States Government, would cause British and Soviets to suspect that our attitude toward Iran is not entirely disinterested and thus weaken our general position here.