Office of the Historian

811.24591/8–2045: Telegram

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

Tehran, August 20, 1945—5 p.m.
[Received August 20—1:15 p.m.]

632. Department’s 298, June 15.68 Embassy submitted note to Minister Foreign Affairs on June 16 rejecting Iranian contention that [Page 572] American installations in Iran affected in any manner by “financial accord” of September 1, 1941 (see enclosure 469 Embdesp 317, May 29) and requesting early intimation whether Iran Government prepared to negotiate for purchase American installations at Bandar Shahpur. On July 1, Embassy submitted note transmitting list of American installations, other than those at Bandar Shahpur and requested early indication those installations which Iran Government desires to purchase (Embassy’s 455, July 470). Pending conclusion surplus property financial agreement which still under negotiation (Embassy’s 625, August 1870) no firm sales offer setting forth prices and terms of payment has been made.

Foreign Office in reply to both above notes takes position all American installations in Iran are to pass gratis to Iran Government under terms of above “financial accord” which accord it states is effective even though not adhered to formally by United States.71

Any attempt to persuade Iranians of error their position may involve protracted discussions with little or no assurance of success but Embassy will nonetheless attempt to persuade them to modify position. Embassy construes Foreign Office reply as evidence of absence of intention Iran Government acquire American installations in Iran through purchase and therefore recommends such construction be confirmed to Stetson by Army–Navy Liquidation Commissioner with instructions that Stetson may offer surplus installations to interested individuals. Should no individual be interested in purchase of any one installation in toto the merchantable equipment of such installation may be salvaged and sold and nonmerchantable portion razed preparatory to returning land in prewar condition to owner (last paragraph Department’s 343, July 970). This drastic action would be resorted to only if further negotiations useless and should it become necessary as last resort to force Iran Government adopt reasonable attitude and willingness negotiate acquisition by purchase. Stetson informed and concurs this recommendation.

Please keep Embassy informed of developments.72

Murray
  1. Not printed.↩
  2. Enclosure 4 not printed.↩
  3. Not printed.↩
  4. Not printed.↩
  5. In undated note 2648, received at the Embassy on August 15, 1945, the Iranian Ministry for Foreign Affairs pointed out that the alleged accord with the United Kingdom and the Soviet Union had been put into effect with the approval and consent of British and Soviet representatives to apply to the transport of goods and war supplies to the Soviet Union, and that since the United States Government had replaced the British Government in taking charge of the delivery of supplies to Russia, the “credibility” of the agreement was also guaranteed by the United States Government. A copy of the note was transmitted to the Department in despatch 68, August 21, 1945, from Tehran; not printed.↩
  6. Not printed.↩
  7. In telegram 633, August 20, 1945, Tehran reported that the Iranian Minister of Finance (Bader) and the Governor of Banque Mellie (Ebtehaj) had come to agreement with American officials on a schedule of rial proceeds from sales of United States Surplus property (891.24/8–2045). After approval by the State and Treasury Departments and the Office of the Army-Navy Liquidation Commissioner in telegram Warx 54437, August 24, 1945, to Colonel Stetson (891.24/8–2445), the substance of the agreement was incorporated in note 110, September 1, to the Iranian Minister for Foreign Affairs, infra.↩