891.51A/1–1145: Telegram

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

22. Reference Embassy’s telegram, No. 18, January 8. As an interim arrangement Prime Minister5 has stated he will designate Black6 to assume administrative control under Council of Ministers of all economic powers abrogated by recent law. Under Black’s supervision each administration will be headed by an Iranian with an American advisor to assist in operation appointed by Prime Minister. This is purely a stop-gap measure to meet the situation resulting from abrogation of Millspaugh’s powers and the early establishment of a new ministry variously termed Ministry of Economy, Ministry of National Economy, et cetera within which would be incorporated the economic functions taken away from Millspaugh.

With the establishment of this new Ministry the Prime Minister states new contracts will be drawn up covering services of any Americans who may be included in such Ministry. While foregoing has thus far only been made orally by Prime Minister, he has promised to incorporate each of these measures in a letter today to Dr. Black.

Black states he has accepted this interim responsibility subject to receipt of Prime Minister’s letter, but that for any subsequent long [Page 540] range appointment he will only be satisfied with a clear cut strongly worded contract. He states that during an interview this afternoon with Millspaugh the Doctor interposed no objection to the new arrangement.

Black further states that at Prime Minister’s request he is submitting on or before January 14 a plan of organization covering all economic functions of the Government.

Morris
  1. Morteza Qoli Bayat.
  2. Albert G. Black, Deputy Administrator of the Finances and Chief Administrator of the Cereals and Bread Section of the American Financial Mission to Iran.