891.6363/10–944: Telegram
The Ambassador in Iran (Morris) to the Secretary of State
[Received October 9—1:05 p.m.]
744. Today’s press reports that at special session of Majlis yesterday Prime Minister announced that his Cabinet had agreed to postpone all oil concession negotiations until after war when world’s economic situation is clearer. His stand was opposed by certain Majlis members who insisted that concession be granted, the members pointedly remarking on discourteous attitude in thus breaking off negotiations just at moment “our northern Ally” had sent its representative to discuss oil. Prime Minister promised to give further particulars at next session.
I saw Ala, Court Minister, last night, who stated that [Shah?] after learning Soviets proposed to exploit not only petroleum in north zone but other minerals which Persians could not themselves undertake with added demand that all other foreigners would be excluded from such exploitation, directed Prime Minister to call off all concession negotiations. Ala expressed hope that this action would not irritate United States.
I am seeing Prime Minister this evening and shall ask for definite confirmation of Government’s stand.