891.24 FLC/4–2447: Telegram
The Secretary of State to the Embassy in Iran
219. War has cabled Gen Grow in reply his R 340 Apr 26 that total FLC cost to Iran available items included in Iranian list probably not exceed twenty million dollars and that Hedayat should not be informed probable cost this time, although after consultation with you Iranian authorities Tehran may be informed. War has informed Hedayat and Grow that when Iranian priority is determined available items will be earmarked and held for Iran 90 days from about May 15 at no cost to Iran, pending finalizing agreement and Majlis ratification.
Since it now appears total cost all available requested items much less than original estimate we feel it would be tactical error for Iranians to request thirty million credit when only twenty million or less will probably be expended. Smaller sum would be more palatable to Majlis and will enable Majlis more readily appropriate additional funds for required medical, transport and other items which may have to be purchased in open market. At same time we have committed ourselves here to thirty million and feel that Hedayat may not fully understand reasons if we suggest reduction. Any request for reduction we feel should come from Iranian Govt.1
Our latest draft agreement light urtel 318, Apr 242 handed Hedayat and is being cabled you.3
- According to telegram 263, May 7, from Tehran, Ambassador Allen conveyed the substance of telegram 219 to Prime Minister Qavam on May 7. The latter expressed his intention to instruct Ambassador Ala to request a credit of not to exceed $20,000,000 (891.51/5–747).↩
- Not printed.↩
- Telegram 227, May 7, not printed.↩