891.51A/12–1844: Telegram
The Ambassador in Iran (Morris) to the Secretary of State
[Received 5:45 p.m.]
936. My 932, December 15. Medjliss Finance Committee has approved proposal to take away from Millspaugh the economic powers granted by the law of 13 Ordibehesht. The committee is still undecided regarding the clause in the Prime Minister’s bill providing that these powers be vested in the Government. It seems to be realized that they cannot be completely abolished and various suggestions are under consideration including the creation of a Ministry of Economics or alternatively a special committee which would be given authority to conduct the emergency economic operations now under Millspaugh’s direction. There is as yet no indication as to when the committee will report the bill back to the assembly.
Yesterday’s newspapers published text of letter Millspaugh has written Medjliss President in which he asserted that repeal of powers would be harmful to Iran and consequences. He concluded however by saying he hoped the Government would be successful in its efforts to reorganize economic administration and declared himself ready to cooperate within the scope of his financial powers.