891.6363/8–3046: Telegram
The Acting Secretary of State to the Ambassador in Iran (Allen)
729. Resuming conversation reported Deptel 709 Aug 23, Dept officials informed representative Iranian Emb Aug 29 that preliminary study joint petroleum Co under aegis UN (point 2, penultimate para reftel) leads Dept to conclusion that proposed international approach to Iranian oil problem is not desirable at this time. Principal controlling factor was stated to be US commitment under Anglo-American oil agreement (1) to respect existing concessions and lawfully acquired rights, (2) to use that instrument as springboard for multilateral accord. (For your info Dept has addressed exploratory note to UK re latter point). Secondary consideration was practical wisdom keeping Iranian oil question out UN while Iranian case remains on SC agenda.
Iranian Emb reference to model petroleum laws other countries prompted Dept to discuss possible desirability enactment petroleum law applying to all future oil concessions in Iran (Item Fifth, Deptel 723, Aug 29), possibly on occasion repeal 1944 restrictive statute. Iranian Emb representative felt such law might provide formula relieve political pressures arising from conflicting foreign oil interests.
Dept officials indicated that question of approaching British authorities re Iranian Emb proposal had been considered at appropriate level of Dept (point 3, penultimate para reftel) with decision that Anglo-American Agreement bound US not to raise question impinging upon existing oil concessions. (In this connection it was learned that Iranian Emb London may approach UK authorities on subject joint Co proposal).
Sent Tehran, repeated London, Moscow.