891.6363 AIOC/12–2949: Airgram
The Chargé in the United Kingdom (Holmes) to the Secretary of State
A–2464. According to Leavett, who handles Iranian affairs in the Eastern Department of the Foreign Office, Iranian efforts to have the Anglo-Iranian Oil Company agreement renegotiated were unsuccessful and the Iranian Government is now prepared to submit again the same agreement on which the Majlis failed to act at the last session. (See Embtels 3913, Sept 29 and 4123, Oct. 12).1
Leavett thought it unlikely that the Majlis would get around to debating the agreement before March at the earliest although the item occupies a high priority on the agenda. There will probably be considerable delay in connection with the procedure of seating members of the Majlis as well as with the continuation of debate on constitutional reforms which is expected to follow. Leavett believes that the AIOC agreement will be the first point of business to be discussed thereafter.
Leavett was uncertain how hopeful the Iranian Government is of securing parliamentary approval of the AIOC agreement but thought it of some significance that the Government had at least dropped the idea of renegotiation and was prepared to sponsor the agreement again in its present form.
It is clear from conversations with local representatives of American and British oil companies in the Near East that a great deal of interest attaches to the outcome of the Anglo-Iranian agreement, since it will help to set the pattern for other concessions in that part of the world. It is believed that further progress in the negotiations between the Iraq Petroleum Company and the Iraqi Government for a revision of the terms of IPC’s concessions in Iraq will await the result of the Majlis’ action on the Anglo-Iranian agreement.
- Neither printed.↩