891.51A/1186: Telegram

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

457. Faced with responsibility of taking steps with possible grave repercussions, Iranian economy [Government?] is showing itself reluctant to take steps that will force the departure of Millspaugh and his mission. Legation has been informed that at secret session yesterday majority of better elements of Majlis felt Millspaugh should stay under a system whereby a council of Iranians would review his economic regulations before promulgation. Millspaugh is to appear before Majlis today in secret session to discuss this idea and it now appears possible that a modus vivendi may be worked out which will permit Millspaugh to remain. Should this occur, it is difficult to see how Saed government could remain in office and still enjoy the confidence of the Majlis and the people.