891.6363/12–544: Telegram
The Ambassador in Iran (Morris) to the Secretary of State
[Received 4:40 p.m.]
900. ReEmbs 895, December 3. Law forbidding oil concession negotiations with foreign representatives was put through the Majlis in 2 hours from time of presentation, meeting only feeble opposition. The success of this tour de force was undoubtedly made possible only by the personal prestige of Dr. Mossadegh but the brevity of the debate and certain other indications point to the possibility that a large group of Deputies knew of the project in advance and had agreed to act quickly in order to forestall opponents. If this was the case, however, [Page 480] they seem to have maintained complete secrecy as there was no advance hints or rumors of the move. Tudeh Deputies from whom real opposition might have been expected appear to have been taken absolutely by surprise and could only make technical objections and plead almost abjectly for time to consider the bill, a request which was briskly denied by the majority.
A story to which I am inclined to give considerable credence says that the bill was prepared in consultation with Saed and Court Minister Ala. Another rumor attributes it to British inspiration, but I have no reason to believe this was the case. Mossadegh himself said the idea was given him by another Deputy some weeks ago. Whatever the source, the law is entirely in accord with Mossadegh’s previous public statements and bears the marks of his handiwork.
From the one point of view the law is superfluous since the Iranian Constitution has always required that any projected concession be approved by the Majlis before taking effect. However, its significance under present circumstances is clear. At one and the same time it ratifies in effect the oil policy of the Saed Cabinet and specifically takes the question of such policy out of the hands of the present and any future Cabinet. It provides the Government with extremely strong defense against future pressure or persuasion which will now have to be directed at the Majlis, a more difficult target for attack by virtue of its numbers.
Article 2 of the law has reference to a proposal frequently put forward in recent weeks by some Deputies and newspapers that Iran should form an organization of its own to exploit and market petroleum. In his speech on December 2 Mossadegh urged the creation of a Petroleum Ministry to undertake this task and proposed that the products be sold to the Soviets or any other interested country at the world market price; he envisaged employment of foreign technical assistance but under Iranian administration.
Press reaction will be forwarded when analyzed.