811.24591/11–2444: Telegram

The Secretary of State to the Ambassador in Iran (Morris)

723. Urtel 868, November 24. Dept concurs in tentative agreement reached between PGC and Paiforce on November 21 with following exceptions:

Our installations may be lent to the British and Russians, if a definite war need is shown, but we should retain title.
Demolition should be resorted to with greatest reluctance. Every effort should be made to agree on terms of sale before destroying anything of value.
American, British and Soviet policy towards surplus disposal in Iran should be as similar as possible, to avoid invidious comparisons and to accomplish more effective results. Dept doubts wisdom of joint British-American approach which conspicuously omits the Russians. This however does not preclude possible parallel action with either British or Russians in particular cases. In all cases both Russians and British should be kept informed of developments.
It is agreed that the Iranians should pay for the installations and supplies transferred to them. The value of these assets may possibly be used later to offset claims, but this point can be determined later.

You may notify the Iranian Government that payment is expected.

Dept is conferring with War and FEA36 continuously in this matter.

Sent to Tehran, repeated to Cairo.

  1. Foreign Economic Administration.