The Secretary of State to the Chargé in Iran (Ford)

320. War Department official responsible for PGC matters connected with operation of Iranian railway states that in view of information contained in your 350 May 19, negotiations in connection with American participation in the proposed railway agreement may be considered as having terminated. Since the Department has been acting merely as a negotiating agent for the War Department in this matter, you should consult with General Connolly as to the best method of bringing the decision to the attention of British and possibly Soviet authorities in Tehran. You may also in your discretion inform the Iranian authorities although it is understood they have not made any direct approach in the matter to the Legation.