891.51/11–749: Telegram
The Acting Secretary of State to the Embassy in Iran
992. Embtel 1441.1 Portion Ala call Nov 7 devoted econ matters apparently based on instrs from Tehran, perhaps unofficial and private, to attempt repair any damage done by Ebtehaj to Iran case for US (presumably grant), assistance. Amb said Ebtehaj’s stress on adequate mil assistance was for purpose protecting Iran resources for econ development program; was not intended imply Iran did not want or need econ help. Stated ministries needed aid to carry out programs in addition projects being executed by Plan org. Referred present bad econ situation and pointed out beneficial effects development plan wld not be felt for several years. Hoped Dept. wld keep Iran’s needs in mind, especially when planning legislative programs for presentation Cong. Asked Dept to “keep door open” at time Shah’s visit.
Asst Sec McGhee replied Dept always Welcomed opportunity discuss matter assistance to Iran but that US Govt’s position outlined in Dept’s note of Sept 22 which shld be accepted as statement US pol on matter. McGhee said Dept cld not consider approaching Cong for aid for Iran when Iran had favorable fon exchange position and dol convertibility privileges and IranGov had access to its Own and other resources with which to develop its economy.
When Ala suggested Iran might experience difficulty in continuing convertibility privileges and IranGov had access to its own and other in London, McGhee said Dept wld watch situation and wld be prepared discuss in light any ensuing developments.
Ala also mentioned Helmand River,2 and was told Dept now com paring list neutral comm nominees recd in IranEmb note last week3 with those recd from Afghan Emb (over year ago); that Dept was sending note to Emb this week asking agreement on Malcolm Jones [Page 568] in lieu Morgan as factfinder, and that Dept hopeful Jones will be ready proceed field early 1950.4
Ala inquired re opportunity for Shah to speak at length with Pres and Secy re many important matters he wished discuss. Amb reassured opportunity wld exist for Shah converse with Pres during stay Blair House and on other occasions. Plan outlined to Ala whereby Secy, Deputy UnderSecy Rusk and Asst Secys Thorp and McGhee wld call on Shah at Prospect House afternoon Nov 18 (in place visit Natl Gallery) following which McGhee wld accompany Shah for meeting with Gen Bradley and JCS. Ala expressed satisfaction.
- Dated November 7 not printed.↩
- For information on the interest of the United States in resolving the dispute in 1948 and 1949 between Iran and Afghanistan regarding distribution of the waters of the Helmand River, see Foreign Relations, 1948, vol. v, Part 1, pp. 486 ff.↩
- Note 2798, October 21, not printed.↩
- Note of November 8, not printed. It indicated that Malcolm H. Jones was attached to the Bureau of Reclamation.↩