891.51A/9–545: Telegram

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

694. At meeting with American Advisers Program Committee Aug 30, Minister of Finance Bader outlined reorganization plan he said he contemplates putting into effect in Ministry. Main point, as related to me by Brownrigg, is abolition of present sections 1 and 2 of Ministry, under respective supervision of Pixley and Black, and elimination any general supervision by Americans of work of Ministry as whole or work of American advisers as group. Director General of each administration of [or] Ministry (such as Treasury, Accounts and Audits, Personnel, Inspection, Cereals and Bread, etc.) would report direct either to Committee or Iranian Under Secretary. Bader would be willing to recognize one American as spokesman for group in matters affecting individual interests of Americans, such as settlement of contracts or similar personal matters, but this spokesman would have no authority in administration.

Both Pixley and Brownrigg have advised Embassy they believe organization of this kind would destroy usefulness of American Mission, (an opinion with which I am inclined to agree) and that most serious members of group will probably resign if it is installed. They themselves appear on verge of resignation, as does Dr. Black. Pixley has been trying without success for three days to see Bader to determine whether he intends to go through with plan.

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Since this development changes situation which apparently existed when mytel 603, Aug 10, was drafted, I think we should now be prepared at least to acquiesce in any desire expressed by mission members themselves to depart. If Bader’s own acts make it impossible for group to furnish effective assistance to Iran, now that he has had opportunity to study recommendations of advisers themselves and to offer proper cooperation, I see no hope of successful rehabilitation of mission’s position.

I propose to await further clarification of Bader’s intention and clearer expression of advisers’ reaction. However, I request Dept authorize me to tell Americans that if they, or important section of their membership, think useful work will be impossible under new plan, Dept would have no objection to their departure from Iran and would not urge them to remain.

Murray