891.6363/854: Telegram
The Chargé in Iran (Ford) to the Secretary of State
[Received 6:48 p.m.]
342. From Leavell. Standard has presented firm offer and been promised Prime Minister’s answer in 2 weeks. Understand Shell has also presented firm offer. Sinclair has presented to [no?] firm offer and only verbal promise through intermediary that they will make better terms than their competitors subject confirmation by their board of directors. This in effect asking for more favorable consideration than competitors.
All firms making preliminary arrangements for support their proposals by rival factions in Parliament. Matter is beginning to be discussed in newspapers. Entire matter is following the pattern predicted in our cable No. 281 of April 24.62 This is worst possible manner to have negotiations proceed from American viewpoint and will probably result in failure of Americans to receive concession at all or on unacceptable terms. It is possible that concession may ultimately be as productive as the Anglo-Iranian concession and situated closer to future big markets so that we cannot too strongly urge that Department in Washington insist that Americans present consolidated offer or one company withdraw.
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[Page 450]Situation here critical account health Prime Minister, (imminent?) fall his Cabinet and increasingly severe and continuous criticism Millspaugh Mission.63 [Leavell.]