891.6363/8–547: Telegram
The Ambassador in Iran (Allen) to the Secretary of State
700. British Ambassador assured me yesterday that while British oil men probably favor some kind of Soviet oil concession in northern Iran (London’s 59, July 31 [30], sent Department as 4154 and Moscow as 258) as protection for their interests in southern Iran, he himself felt confident that no kind of agreement between Iran and USSR could be devised which could safeguard Iran against dangerous Soviet political activity here. He said he thought it would be better for Iran not to enter into any oil concession agreement with the USSR.
This is the first clear cut statement on the subject he has made as far as I am aware. It is possible that he has received instructions from London and that his somewhat equivocal attitude in the past has resulted from uncertainty as to his own Government’s position.
As regards Pyman’s suggestion that Iran might agree not to grant concession in the north to anyone other than USSR, I hope this subject will not be raised. Agreement of this kind while perhaps unobjectionable economically would be of the unequal treaty type which Britain has long had with sheikhdoms of the Persian Gulf and would be politically open to much criticism.
Repeated to London 83. Department pass Moscow 74.