891.7962/2–1747: Telegram
The Ambassador in Iran (Allen) to the Secretary of State
117. During conversation with Minister of Finance1 concerning sale of Abadan Airfield,2 I took occasion to stress once again our expectation that American airlines would receive no less favorable treatment in Iran than lines of any other foreign country. Minister asked if we had any reason to think this would not be the case. I said we had very good reason to think that planes of the Soviet Union would be treated better than ours if present Iran practice continued.
I pointed out that Pan American Airways would soon extend its line from Ankara to India. We had hopes that at least a branch or [Page 895] alternate route might eventually come from Ankara to Tehran and then on to Kabul and India. Stops might occasionally have to be made at Tabriz and Meshed. I asked the Minister whether we could assure Pan American that it would be permitted to carry passengers between Tabriz, Tehran, Meshed; that it could bring in free of duty or taxes its airplanes, parts and gasoline for this internal traffic even though it competed with an Iranian line which paid high duty and taxes on everything; whether he would permit Pan American to establish radio and weather stations wherever it liked in Iran without even notifying Iranian authorities; bring in its passengers, cargo and personnel without any visa or customs formalities; and pay no attention to the Iranian passport or customs or aeronautic authorities at Iranian airports; and above all do all these things without any kind of air transport agreement with Iran and without any reciprocal permission being granted to Iranian planes to fly to the US under any circumstances. I added that no American line would expect such privileges but that under most favored nation treatment, we could demand them since all of these privileges were being accorded planes of another country.
The Minister, who is one of the strongest members of the Cabinet and a patriotic Iranian, expressed appreciation for these remarks and said they would materially strengthen his efforts to regularize Soviet air operations in Iran. He said that after much difficulty he had succeeded only last week in obtaining a written commitment from the Soviet Ambassador in connection with trade negotiations, that the USSR would henceforth respect Iranian customs in the importation of Soviet goods into Iran. Minister hoped now to have further success in obtaining respect by the Soviet Union for Iranian laws and regions [regulations].
Whenever I have discussed aviation matters with Iran officials, I have emphasized that the US as an air-minded nation has no desire to hamper developments of air traffic between Iran and the USSR, but on the contrary wishes to encourage such traffic all over the world, on an equitable basis. I have expressed the hope, however, that the time would come when Iran, while welcoming Soviet planes to Iran, would insist upon reciprocal right for Iranian planes to fly to USSR. Without reciprocity there should be no Soviet planes in Iran.
If this policy is eventually followed by all states bordering the USSR, perhaps the USSR may gradually be persuaded to liberalize its aviation policy.
Sent Department 117; repeated Moscow 12 and London 17.