Office of the Historian

Statement Released to the Press by the Department of State on July 29, 19481

July 29, 1948

An agreement under which the United States extended a credit to the Iranian Government for the purchase of 10,000,000 dollars’ worth of surplus military equipment and a credit not to exceed 16,000,000 dollars to cover the cost of repairing, packing, and shipping this equipment to Iran was signed on July 29 by Fred W. Ramsey, Foreign Liquidation Commissioner, for the United States, and by Mr. Noury-Esfandiary, Minister and Chargé d’Affaires of Iran. The agreement replaces a previous agreeement dated June 20, 1947, which offered the Government of Iran a 25,000,000 dollar surplus-property credit.

The agreement provides that the American Government will be repaid according to customary FLC credit terms at an interest rate of 2⅜ percent per annum, extending over 12 years.

  1. Reprinted from Department of State Bulletin, August 15, 1948, p. 211.↩