Foreign Relations of the United States: Diplomatic Papers, 1945, The Near East and Africa, Volume VIII

811.24591/1–1945: Telegram

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

Washington, February 6, 1945—4 p.m.

57. Dept is forwarding by mail copies of exchange of correspondence with War⁵³ which lays down an agreed basis for disposal of surplus military installations in Iran. The agreement provides that: (1) War will be guided in this matter by policy of Dept (2) Dept is prepared to conduct negotiations with Government of Iran (3) War will prepare an inventory of installations (4) parallel action with the British and Russians is encouraged, and no joint action with either ally should be undertaken which conspicuously excludes the other. We should keep the British and Russians informed, wherever appropriate, of independent American plans as they develop. (5) Dept recognizes priority of military needs in disposal of surpluses. However, special consideration should be given Iranian needs for any particular item especially when its removal would render valueless an otherwise useful installation. (6) Installations not needed by military should in principle be offered first to Iranian Government. War reserves right to offer certain oil installations to Anglo-Iranian Oil Company. There may be other exceptions to principle of first offer to Iranian Government but Dept would wish to be informed before they are agreed to. (7) Where an allied Government shows the Theater Commander that any particular installation is needed in the war effort, this installation should be sold to Iranian Government only on understanding that it will be made available rent-free to the allied Government for period of such war use or for duration plus 6 months, whichever is shorter. (8) While it is desirable to obtain maximum financial return for suplus property, political considerations may have a bearing on this principle. No disposal should be made which is harmful to Iranian economy or contrary to American policy of economic assistance to Iran. (9) Demolition of installations should be carried out with greatest reluctance and should not be resorted to without prior consultation with Dept or Embassy. (10) Sales price for installations and any Iranian claim for war damages might profitably be related in negotiations with Iranian Government. (11) Installations not desired by Iranian Government may be offered for sale to other persons, public or private, in or out of Iran. (12) Opening prices asked should be based on original cost minus depreciation but it is recognized that in some cases sales will have to be consummated on basis of fair value for intended use of purchaser. (13) In cases where there is joint American British investment PGC and Paiforce⁵⁴ will work together in establishing the respective investments and proceeds of sales will be divided in proportion thereto. Same principle will apply in disposal of any installations in which there is joint American and Russian interest. (14) The Office of the Army–Navy Liquidation Commissioner, in process of organization, will be charged with disposal of War and Navy properties overseas. Until it is organized sales will be made in accordance with existing procedures.

War is instructing Commanding General PGC⁵⁵ to conform to above agreed procedures in disposal of PGC surplus.

Grew

53. Letter of December 29, 1944, from the Secretary of State to the Secretary of War, Mr. Stimson’s reply of January 19, 1945, and Acting Secretary of State Grew’s acknowledgment of January 26, 1945, none printed; copies transmitted to Tehran in instruction 84, February 5, 1945, not printed.
54. Persian Gulf Command (American) and Persia and Iraq Force (British), respectively.
55. Brig. Gen. Donald P. Booth.