891.248/9–3044: Telegram

The Ambassador in Iran ( Morris ) to the Secretary of State

723. Redesp 1063, August 9.5 Tehran manager of AIOC has been informed by Iranian authorities that action on application for Abadan land is suspended because of American interest in matter. He has, therefore, asked Embassy informally if action can be taken to settle question soon since company wants to begin certain construction work.

American head of Iranian agency concerned says he has ordered no action on application until Embassy agrees. However, under terms of AIOC concession company can force Iranian Government to act after lapse of 4 months, which has already expired. Only basis Government would have for refusal to grant application would be formal request from American Government.

Although I do not think AIOC desires to force issue against our wishes it may be difficult, and certainly will be embarrassing, to hold up action much longer unless we are prepared to interpose formal objection with Iranian Government or make other proposals to safeguard our interests. I should appreciate telegraphic instructions as requested last paragraph despatch under reference.

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