891.6363/827: Telegram
The Chargé in Iran (Ford) to the Secretary of State
[Received March 10—7:57 a.m.]
176. Department’s special instruction 317, January 27.49 Status of our oil negotiations with Iranian Government is as follows:
Draper has presented his proposition to Prime Minister50 and it is now being studied. Certain essential figures are being withheld until negotiations have reached more positive stage.
In interview yesterday with Soheily he stated British51 had just presented supplemental proposal which had not yet been translated. He told me that should he continue in power (which becomes increasingly problematical) he would give us every ethical opportunity to meet our competitors in this field since he remained desirous of having American oil interests enter Iran and was particularly opposed to having entire southern coast of Iran tied up under British concessions.
For our future guidance and particularly [pending?] decisions reached at forthcoming London discussions, I should welcome Department’s directive regarding attitude I should adopt vis-à-vis my British colleague in Tehran52 on general subject our oil negotiations here. Thus far I have remained completely noncommittal regarding active interest we are taking in this subject in Iran despite repeated openings by Bullard. My first reaction has been and still is to be quite frank with him, (1st), because he unquestionably knows Draper is here and has presented his proposition and thus when our activities eventually are brought into the open he will be in position of being able to question the degree of our good faith which otherwise characterizes all of our relations, and (2nd), because without wishing to appear overly naive in this matter, I feel that with a careful and open handling of this question with both British and Soviets we might well be given, if not a free hand, at least a less competitive field in Iran than might otherwise be the case. Britain is determined to keep her political skirts clear in Iran, and while she will never be above turning an [Page 446] honest penny either now or in postwar developments, my personal belief is that we would be on firmer ground by inviting her cooperative interest in our negotiations now than by appearing to be keeping her in the dark about them. Certainly every effort should be made to avoid having the pending oil negotiations degenerate into an auction sale which might well happen with Iran acting as auctioneer. In recent talks with Saed,53 who appears to be most favored candidate for next premiership, and with Ala,54 mouthpiece of Shah, it is evident Iran wants our oil interests here, but in last analysis financial considerations will carry great weight.
Sir Reader Bullard, who is today presenting his letters credence to Shah as Ambassador, informs me he is leaving for London toward end of March, presumably in time to participate in London discussions.
- Not printed; it transmitted a letter from the Standard-Vacuum Oil Company to its representative in Iran for oil negotiations, Thomas J. Draper.↩
- Ali Soheily.↩
- The Royal Dutch Shell Company.↩
- Sir Reader W. Bullard, British Ambassador in Iran.↩
- Mohammed Saed, Iranian Foreign Minister.↩
- Hussein Ala, Minister of the Iranian Imperial Court.↩