891.24/344: Telegram

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

25. Prime Minister informs me his Government has signed contract with Russians by which latter take over operation of canning plant at Shaki. Eighty percent of production will be taken by [Page 632] Russians and remainder by Iranians. Because of Iranian insistence Russians agree in slaughtering animals to consider carefully Iran’s food requirements and economic needs.

Prime Minister states Iranians were reluctant to sign contract and it was done solely to appease Russians who are pressing them on other and more objectionable questions, most important of which are the financial agreement (my 446, December 1752) and taking over of arms factories (my 7, January 4). Iranians are indulging in delaying tactics in these two matters but are apprehensive of carrying this policy too far.

Dreyfus
  1. Not printed.