891.6363/1–2847: Telegram

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

secret

77. Moscow radio, as monitored in Tehran broadcast talk on January 26 entitled “oil and politics”, in which American oil companies were described as “closing their grip” on oil of Iran and Saudi Arabia:

Speaker said allegation of American officials that recent petroleum contracts1 were private was “contradictory to the facts” and that it was now clear that American support of “Iranian case”2 had been to prepare soil for expansion of American influence in Iran. “It is also evident that the new agreements between oil companies will not prove favorable to the independence of Middle and Near East, and particularly the Arabian countries”.

It is interesting to note that while the Soviet radio is thus attacking American oil interests in Middle East, this Embassy has scrupulously [Page 894] refrained from exerting any influence opposed to Soviet desire to obtain a concession in Iran, despite frequent pleas from numerous Iran officials for American help in finding a means of refusing the Soviet request. We could easily kill the Soviet Union’s chances of getting such a concession in Iran with a statement not half as critical of the USSR as the Soviet accusation against the US quoted above.

Last night the Shah said he had received another urgent suggestion from Ambassador Ala in Washington that the Iranian Govt propose the international development of oil, under UN supervision, for all of Iran, including the British concession area. Ala recommended against any bilateral agreement with Soviet Union under any circumstances.

Shah says he pressed Qavam yesterday regarding details of Soviet agreement. Shah favors limiting territory covered by agreement to very small area after two years of exploration. Most likely place for the north is small triangle near Gorgan. Shah says it is unthinkable to allow Soviet technicians to wander freely over five northern provinces during 50-year life of agreement. Shah would much prefer to enter into no oil agreement with USSR whatever and accused Qavam of wanting to create another agreement like the caviar concession.

The Iranians would probably pursue the international angle if we gave them any encouragement. I explained again that we could not concur in any attack against established concessions.

Sent Dept 77, repeated London 11, and Moscow 7.

Allen
  1. For the nature of the contracts of the Anglo-Iranian Oil Company with the Standard Oil of New Jersey and the Socony-Vacuum interests and between the Gulf and Shell interests, see telegram 13, January 8, 1947, to Tehran, Foreign Relations, 1946, vol. vii, p. 49.
  2. Before the Security Council in 1946.