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The Chargé in Iran (Ford) to the Secretary of State

554. Legation’s 519, July 21. British Chargé has sent me statement by AIOC official regarding Abadan property; main points are:

Application was made some months ago and few if any American buildings were then on area in question, which covers 1682 hectares.
Transfer of title to land would not affect title to buildings, since Iranian law recognizes separate ownership of land and superstructures.
Disposal value of installations would probably be enhanced by AIOC ownership of land, since it would be in best position to adapt them to general developments scheme of area.
AIOC wants land for the future establishment of supply, reception and distribution center, housing schemes, and other improvements for local community.

Statement mentions incidentally that majority of American buildings were, at least until recently, located on land previously granted to AIOC.

This of course does not entirely clarify matter. I propose to go direct to AIOC and, in consultation with General Connolly, determine exact status of land covered by all American installations at Abadan.