891.6363 AIOC/9–2049: Telegram
The Ambassador in Iran (Wiley) to the Secretary of State
1166. British Chargé Lawford informs me that there has recently been much activity regarding AIOC agreement unratified by last Majlis. Lawford stated that before British Ambassador Le Rougetel left for England on leave he was given most categoric assurances by Iran Government that there would be no question of attempting to renegotiate agreement which would be submitted as is to new Majlis when it convenes, that Iran Government would stand or fall on issue.
Lawford explained that recently Iran Government has been blowing hot and cold on prospects of Majlis ratification. One day British Embassy would be assured that agreement would certainly be ratified but the next day British Embassy would be warned that agreement had no chance of ratification and so it has been going. The question of an advance from AIOC has been presented acute question. AIOC, as previously reported,1 has offered 5 million pounds out of royalties but Iran Government has tried to insist on 6 million pounds out of undivided surplus. Lawford has taken firm position, on instructions, that this was not feasible. Iran Government has retorted that originally AIOC had offered 6 million pounds advance out of surplus. Lawford has answered that this offer was rejected by Iran Government, which insisted on renegotiation of entire concession. AIOC was adamant that, under present circumstances, no such advance could be made on the basis of an agreement which had not been and might not be ratified. The Iran Government finally decided to accept 5 million pounds advance provided no interest be paid. AIOC insists upon interest payment. The advance in question would have to do with royalties due next February. Some 4 days ago Minister Finance Golshayan received Hobson of AIOC and stated in substance that it would be necessary [Page 150] to renegotiate the new agreement in order to obtain ratification. He proposed that negotiations for this purpose be held secretly in London and that the British should at once study question of making further concessions. He went on to say that the IPC terms now being negotiated would be much more favorable than those accepted by AIOC. Iran Government would insist on terms equally favorable.
[Here follow two paragraphs detailing Mr. Lawford’s conversations with high Iranian officials.]
In any event Lawford has been reassured that government would stand by agreement and would submit it to Majlis. Lawford’s forthright handling of matter has received full approval his Foreign Office.
Please pass to Armed Forces.
Sent Department 1167 [1166], repeated London 153.
- In telegram 1123, September 13, noon, not printed.↩