891.6363/10–244
The Ambassador in Iran ( Morris ) to the Secretary of State
[Received October 2—2:15 p.m.]
728. Soviet Ambassador Maximov and Vice-Commissar Kavtaradze had audience with Shah yesterday morning substance of which was given me last night by Court Minister Ala as follows:
Soviet representatives asked for exclusive rights over 5-year period for petroleum exploration by Russian Government in 200,000 square kilometer area of northern Iran stretching from Azerbaijan to Khorassan. Requested concession be granted prior to Kavtaradze’s departure from Iran which is apparently contemplated in the near future.
[Page 454]Shall replied matter was outside his competence and should be taken up with Prime Minister and Cabinet who would doubtless consider it in conjunction with American and British requests now pending. Maximov and Kavtaradze disagreed saying that American and British proposals were on commercial basis whereas they were proposing agreement between states and therefore the Russian proposals should be considered on a different basis. I understand however that they will approach Prime Minister.
Ala said he had seen Saed after audience and had urged him to stand firm against Soviet demand for immediate grant. Ala suggested he use argument that Anglo-American petroleum agreement envisaged consultation among all powers interested in oil and Three Great Powers should therefore get together on this matter.
Ala has informed British Ambassador of foregoing.
Sent to Department, repeated to Moscow.