891.51A/2–945: Telegram

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

85. Millspaugh today belatedly admitted to me what I had previously seen stated in local press, namely, that on February 5 he wrote Prime Minister saying he was preparing to depart and asking Government to terminate contract by payment of salary through third year of his employment. (Incredibly Millspaugh maintained to me that this did not constitute resignation.) Last night Bay at sent word to Millspaugh that Finance Minister had been instructed to let him write his own terms of settlement.

Yesterday Bayat gave Majlis full account of his recent correspondence with Millspaugh which has been voluminous. In substance he stated Government had refused to grant Millspaugh demands, had accepted his resignation and would choose a successor from among Americans now in Iran. Although no formal bill or resolution was presented and no vote was taken Majlis made its emphatic approval of Government’s course entirely clear.

When he came to see me this morning, Millspaugh was evidently shaken by fact that no voice had been raised in his defense in Majlis. Main points of our conversation were

(1)
He asked me to go to the Shah21 and request that all action regarding his position be postponed temporarily on ground that it was essential to arrange for transfer of his powers to a successor before his departure. I refused saying transfer of powers required Majlis action and if it wished Majlis could act just as well in his absence.
(2)
He wanted to know whether Department would back him up. I said I knew Department was not prepared to give him personally the kind of support he had in mind. The Embassy had already advised Iranian Government that decision regarding his employment was one for Iranians alone to make and I had no reason to think there would be any change in this attitude. Millspaugh said that if this was the case he could see nothing to do except settle his contract and depart.
(3)
He said various members of mission had been asking his advice regarding their own course of action and he had been advising them to get out if he himself left. He felt he had a duty to warn his subordinates against dangers they might run by remaining in view of uncertain conditions and unfavorable Iranian attitude. I said I disagreed entirely with this point of view. Department had expressed definite wish that mission as a whole should not depart even though Millspaugh should leave. Members of mission were capable of making their own decisions. I spoke emphatically because I had distinct impression Millspaugh was motivated by desire to destroy whole structure since he was himself being forced out.

I gave Millspaugh no encouragement to hope for assistance from the American Government so far as he personally was concerned and I expressed myself perhaps more plainly than on previous occasions. In doing so I of course had in mind Department’s earlier instructions especially telegrams Nos. 604 and 623 of October 5 and 17.22 I believed it unnecessary and inadvisable to await further instructions since Millspaugh’s personal position is hopeless. Whatever else may happen it will be best for all parties to have him withdraw immediately.

Morris
  1. Mohammad Reza Shah Pahlavi.
  2. Neither printed; No. 604 gave the Department’s analysis of difficulties encountered by the American Financial Mission in Iran and concluded: “The Department is inclined to believe that it would be remiss if it did not inform Dr. Millspaugh now, in all frankness, that should any occasion arise for requesting the Department’s support in connection with his employment by the Iranian Government, the Department would not feel justified in lending such support. The Department would make it clear that this policy, which it has adopted reluctantly but definitely, in no way implied a lack of appreciation for his devotion to duty and sincerity of purpose.” (891.51A/10–544) No. 623 stated: “It might be preferable for the question of Dr. Millspaugh’s continued employment by the Iranian Government to be acted on by the Iranian authorities without any action by Dept which might be alleged as interference.” (891.51 A/10–1144)