891.51A/1–2445: Telegram

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

50. I had a long conversation with the Foreign Minister and with reference to the last paragraph of my No. 37 of January 19, insistently requested that he clarify, together with the Prime Minister, the situation of the American advisers who have been working in the economic field. I reminded him of the previous assurances given by the Prime Minister and by himself to me that the mission per se would not be destroyed. I told him that I was unable to understand the delay in issuing the necessary letters of authority to Dr. Black and his colleagues which the Prime Minister had agreed to. I derived the impression that Entezam was also nonplussed as to the failure of the Prime Minister to carry out his promises to Dr. Black and the other advisers to arm them with proper authority. He promised immediate consultation with Prime Minister and an endeavor to settle the matter along the lines desired by Dr. Black and his colleagues and supported by me.

Parliament is going to be asked to take a decision on the Ebtehaj–Millspaugh controversy. The necessary steps are being taken by the Minister of Finance and it may be expected that the matter will reach Parliament in a day or two. The submission of this question to Parliament is being done at the instance of Prime Minister Bayat. It appears to be in accordance with a clause in Millspaugh’s contract which provides for the reference to Parliament for decision of disputes between Millspaugh and the Government. The Foreign Minister at my request has said that the discussion in the Majlis would be held in secret. The Department, of course, understands that this is to avoid undesirable publicity and newspaper controversy.

I have had several lengthy conversations with Dr. Millspaugh in the last few days, but he blows hot and he blows cold and I do not know what he intends to do. My personal impression is that he is considerably beaten down by all his difficulties and disputes and he is certainly not in a state of vigor. I am talking to him again right away.

Entezam told me that the Government had requested Millspaugh several days ago verbally to remain in his functions as Administrator General of Finance. However, he added that Millspaugh’s attitude was noncommittal.

Morris