891.01/9–1447: Telegram
The Ambassador in Iran (Allen) to the Secretary of State
877. Qavam will present his new government and program to Majlis today. Only significant change in Cabinet is appointment of Nuri-Esfandiari, now Iranian Ambassador to Ankara as Foreign Minister.
Prime Minister will not make any statement on oil in his program, but opposition deputies may demand his views on most important question facing Iran today before they are willing to cast their vote of confidence. If they ask, I understand Qavam is prepared to make full report on Soviet oil requests, to deny that he has made any commitments whatsoever on the subject except to agree to pass their request on to Majlis and will ask Majlis to tell him what to do in this regard rather than ask him questions.
Continued reports of salutary effect of our statement on oil are reaching Embassy from all sides. Qavam’s assistant, Nikpey, said last night that Qavam was highly pleased and hoped it would be followed by confirmation by the Department in Washington. Shah, who is confined to bed after minor operation, has sent word of his appreciation through Palace officials. Numerous deputies, other officials and Iranians of all classes have called or sent word of their gratitude. “Once more America has saved Iran” is frequent comment.
Statement was shown to British Chargé before it was made and he expressed full agreement, saying it was “quite what we think the Persians should be told”. No reaction has come from Soviet Embassy but two Soviet-controlled papers criticize statement this morning as having been made to further American efforts to gain control over Iran’s resources.
Sent Department 877. Department pass to London as 113 and Moscow as 102.