The Third Secretary of Legation in Iran (Calhoun) to the Secretary of State
[Received July 18—2:20 p.m.]
513. Reference Legation’s 498, July 13. Further discreet inquiries regarding Abadan Island property have only confirmed that Anglo-Iranian has applied to acquire an area which probably includes at least part of our military installations. I hesitate to pursue investigations before approaching British since I interpret understanding reached at London by Under Secretary2 to mean that possible sources of misunderstanding such as this should be frankly discussed before these parties have opportunity to misinterpret them. I am afraid Legation’s informal questions may already have given some Iranian officials idea we and British are out to cut each other’s throats on this issue. Please instruct.