891.51A/1160a: Telegram

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

357. Iranian Minister9 has informed the Department orally that he has received from Prime Minister Saed a long telegram expressing surprise at the tenor of the American note regarding the advisory missions, and pointing out the Iranian Government’s disappointment at the lack of accomplishment of the American advisers. The Iranian Government suggests that Dr. Millspaugh be divested of certain of his economic powers.

The Minister was reminded that the American Government did not originate the idea of American advisers in Iran and that the [Page 410] Department had in no way interfered in the matter of the powers freely accorded them by the Majlis. The Department would feel it necessary to insist, however, that any American advisers in Iran should be given support and protection by the Iranian Government and every opportunity to make a success of their work.

On the question of Dr. Millspaugh’s powers, it was pointed out to the Minister that the Iranian authorities should consider carefully before attempting any absolute separation of two matters so closely interrelated as economics and finance. The Iranian Government would not wish to create conditions which would make it unlikely that Dr. Millspaugh or others who might undertake his work could succeed. It might be impossible for a financial adviser to accomplish the difficult task under wartime conditions unless there was also a strict regulation over the economy of the country.

The Minister was also reminded that the Iranian authorities should consider carefully before taking action which might result in their having to request the Department’s assistance in obtaining other advisers to replace any of those in Iran. He was told that the Department would continue, as always, to accede to any appropriate Iranian request for assistance but in view of the difficulties in recruiting the advisers already there, replacements would inevitably entail very great difficulties.

  1. Mohammed Shayesteh.