Office of the Historian

861.24591/4–946: Telegram

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

Tehran, April 9, 1946.
[Received April 9—10:50 p.m.]

485. Following translated texts of notes dated April 4 exchanged [Page 414] between Prime Minister Qavam and Soviet Ambassador Sadchikov. Texts were published here April 8.

a.
From Sadchikov to Qavam: “I hereby have the honor to inform Your Excellency that according to instructions received the Soviet Army Command in Iran has taken all preliminary steps for the complete evacuation of Iranian territory by all Soviet Army units within a period of one-and-one-half months as from March 24, 1946.”
b.
From Qavam to Sadchikov: “I have the honor to inform Your Excellency that I have taken note of the purport of Your Excellency’s note stating that as a result of instructions received by the Soviet Army Command all preliminary steps for the complete evacuation of Iranian territory by all Soviet Army units within a period of one-and-one-half months starting from March 24, 1946, have been carried out.”
c.
From Qavam to Sadchikov: “Following the conversations which have taken place between us I have the honor to inform Your Excellency that the Imperial Government of Iran agrees that the Iranian and Soviet Governments should establish a joint Irano-Soviet Company to explore and exploit oil producing territories in northern Iran under the following fundamental conditions:
1.
During the first 25 years of the company’s operations 49% of the shares will be held by Iran and 51% of the shares will be held by the USSR, and during the second 25 years 50% of the shares will be held by Iran and 50% will be held by the USSR.
2.
Profits accruing to the company will be divided in proportion to the shares of each party.
3.
The boundaries of the lands originally allotted for exploration are those (shown) on the map which Your Excellency left with me during our conversation on March 24 with the exception of the part of western Azerbaijan situated on the western side of a line commencing at the point of intersection of the boundaries of Iran, Turkey and the USSR, crossing the eastern shore of Lake Rezaieh, and reaching the city of Miandoab, as additionally indicated on the said map on April 4, 1946. Meanwhile the Iranian Government undertakes not to grant a concession in the territory situated west of the said line to foreign companies or to Iranian companies with foreign participation or employing foreign capital.
4.
On the Iranian side the capital will consist of the oil bearing lands mentioned in Article III which after technical operations shall contain oil wells the produce of which may be useful for the company and on the Soviet side the capital will consist of any kind of expenditures involved, instruments, equipment, and the salaries of the experts and laborers who may be needed for the extraction and refining of oil.
5.
The period of operation of the company is 50 years.
6.
After the expiration of the period of the company’s operation the Iranian Government shall have the right to purchase the shares belonging to the USSR and/or to prolong the period of operation of the company.
7.
The protection of the lands subject to exploration, the oil wells and all installations of the company will be carried out exclusively by Iranian security forces.
The agreement to be concluded later for the establishment of the said joint Irano-Soviet oil company according to the text of this note will be presented for ratification by the new Iranian Majlis as soon [Page 415] as it has been elected and has begun its legislative activity in any case not later than 7 months after March 24 of the current year.”
d.
From Sadchikov to Qavam: Note identical, mutatis mutandis, with note quoted immediately above.

Sent Department as 485, repeated Moscow 152, Tabriz 68, London 100, Cairo 199.

Murray