Office of the Historian

891.77/11–345: Telegram

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

Tehran, November 3, 1945—6 p.m.
[Received November 3—5:40 p.m.]

910. Embassy telegram 820 Oct. 10.88 Prime Minister Hakimi and Minister Finance designate Hajir state $2,140,000 check for contracted purchase railway rolling stock will be paid tomorrow.89 They also confirm (Embassy telegram 850 Oct 1788) previous information that Govt unable raise funds immediately for purchase 184 additional tank cars and 25 cabooses totaling $600,000 and confirm interest former Prime Minister Sadr (Embassy telegram 885 Oct 25) in purchase all immovable property.

They propose (1) immediate conclusion conversion agreement similar to Sept 1 agreement (that is conversion into dollars in equal installments in 3, 5 and 7 years) covering proceeds from sales of immovable property and above-mentioned 184 tank cars and 25 cabooses; (2) [Page 579] immediate purchase of 184 tank cars and 25 cabooses; (3) immediate purchase all immovable property for lump sum equivalent to by percent of invested costs; (4) payment to be made in Govt promissory notes payable in rials on conversion dates indicated above; (5) Iran Govt will assume all claims arising out of use of real estate on which American Army owned immovables have been erected.

We believe this proposal best possible obtainable and recommend its immediate acceptance for reasons: [Here follow reasons and other considerations.]

Earliest telegraphic approval above proposal requested90 because of urgent time element. If accepted, we shall then endeavor interest Govt purchase all movable property91 which disposal would probably prove more profitable than piecemeal disposal to individual buyers and would greatly aid in early withdrawal of US forces.

Murray
  1. Not printed.↩
  2. Payment was made on November 5 (telegram 917, November 5, 1945, 1 p.m., 891.77/11–545). On October 6, the Iranian Government had agreed to purchase approximately 1500 locomotives and railroad cars and other railroad tools and equipment and had made full payment of $8,000,000 on October 9 (telegrams 808, October 6, 1945, 11 a.m., and 820, October 10, 1945, 9 a.m., 891.77/10–645, 10–1045).↩
  3. Not printed.↩
  4. Authorization was given in telegram War 81651, November 7, 1945 (891.24/11–745).↩
  5. The Hamadan truck fleet, consisting of 972 used trucks, a quantity of scrap and tools, and 200 tons of spare parts, was sold to the highest private bidders on September 16 for rials which at the official rate of exchange of 32 to the dollar amounted to $937,500 (see Office of the Foreign Liquidation Commissioner, The History of Foreign Surplus Property Disposal, 1945–1949, vol. ii, Field Administration and Operations, pt. ii, The Disposal of Surplus Property in the Africa-Middle East and Persian Gulf Areas, pp. 223–224). The remainder of movable surplus property in Iran was sold on December 5 to a private syndicate for $2,500,000 and 144 million rials (telegram 1080, December 6, 1945, 3 p.m., from Tehran, 891.24/12–645).↩