891.51A/6–2944: Telegram

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

468. Millspaugh situation remains unchanged. Millspaugh is adamant in declining to consider repeated Iranian proposals that he [Page 416] allow his economic powers to come under the control of the Minister of Finance as suggested by Saed, the Majlis and the Court. Millspaugh had a long meeting with a group of Deputies last night during which he explained his views at length only to meet the above suggestion repeated over and over again. It appears that Saed has informed no one except Cabinet of Millspaugh’s proposed compromise (my 461, June 27) and is trying to give the impression that while the Government is willing to retreat a long way from its position Millspaugh is exhibiting his usual stubbornness. Millspaugh has now informed Majlis of his plan. Situation still appears hopeful however as Majlis and Shah have given indications that they sincerely wish Millspaugh to stay.

Subordinate members of mission are remaining at their jobs and I have advised those who have asked to await developments before taking any further action. A number of these men did not actually submit formal resignations but merely informed Millspaugh in writing that they agreed with him in his stand and that it would be impossible to carry on effective work under the conditions proposed by the Government. Most members of the mission wish to remain in Iran and two have stated to me specifically that they hope for Millspaugh’s withdrawal and Robinson’s14 appointment as his successor.

  1. James G. Robinson, formerly with Dr. Millspaugh in Iran, acted as recruitment officer in the United States for the Millspaugh Mission.