Foreign Relations of the United States, 1948, The Near East, South Asia, and Africa, Volume V, Part 1

891.24 FLC/5–1348: Telegram

The Secretary of State to the Embassy in Iran

confidential

Washington, May 13, 1948—7 p. m.

436. From Brown,¹ Acting, FLC. New surplus property credit agreement superseding agreement dated June 19 [20²], 1947 being negotiated here with Iranian Military Mission. Draft agreement presented to Mission May 13 provides for credit up to $10,000,000 for sales price surprop and up to $16,000,000 for costs of care and handling including repairs and transportation from Europe or U.S. to Iranian port. Payments of dollar installments and drawings of Iranian currency or property would be limited to $3,000,000 equivalent in any one year.

Only point on which serious difference has arisen is exchange rate provision applicable to Iranian currency or property which may be acquired by U.S. on acceleration basis under option provisions of credit agreement.

[Here follows further discussion, primarily of the exchange rate provision.]

[

Brown

]

Marshall

1. Maj. Gen. Philip E. Brown.
2. See editorial note, Foreign Relations, 1947, vol. v, p. 916.