CFM Files: Lot M–88: Box 151: Secto Cables: Telegram

The United States Delegation at the Tripartite Foreign Ministers Meeting to the Acting Secretary of State


Secto 276. Further discussions Iran held at meeting this morning between Hare and Palmer for US and Wright, Furlonge and Leavett for UK.

Referring to our previous talks on this subj (Secto 186 May 61) Furlonge said FonOff had asked for comments Brit Amb Tehran on proposed line of action.

Re suggestion economic mission, Brit Amb thought Iran already over-surveyed and doubted wisdom tying any proposed statement on Iran to announcement of econ mission. Hare explained we did not regard this as just another econ mission, but one which wld be headed by well known personage and wld concentrate on immediate concrete achievement.

Brit Amb did not think step-up in informational activities wld do very much good. What Iranians need is not more info but general “gingering up”. Hare said not our intention merely concentrate on conventional info activity but to develop new tactics which wld have real impact on existing sit.

Re AIOC supplementary agreement, FonOff reps stated they had given careful consideration our suggestions. Agreement had been reached with Iranian Govt after much careful preparation, during course of which Mr. Bevin had talked to AIOC officials to emphasize from political standpoint necessity reaching equitable agreement. FonOff feels present supplemental agreement is fair one. From standpoint of positive assistance to help Iran thru her present difficulties, FonOff feels ratification agreement in present form wld be big contribution. Everything therefore seems to point to desirability early [Page 1068] ratification in present form. If, on other hand, parties start tinkering with agreement at present time, it may take months before matter can be sewed up and Iran receive increased benefits which it needs so badly to undertake developmental program.

Hare said there seemed to be differences in UK and US assessment of possibility of agreement getting thru Majlis. We had doubts re prospects ratification in present form and have been somewhat worried by UK take it or leave it attitude. We recognize that agreement offers a good deal, but we wondered if it had not gotten into too rigid a framework.

Wright said FonOff appreciated force our arguments. UK has considered question very carefully from all points of view, including political and is sure it is taking right stand in pressing for ratification in present form. He wld draw up for our info list of points in agreement which UK considers strong and beneficial to Iran. In light our joint appraisal Iranian sit and need proffer econ assistance, he felt it wld be to benefit of everyone concerned to bend our efforts toward getting present supplemental agreement thru Majlis. In order assist in this, he suggested our Amb in Tehran might, in informal convs with Iranians, take line that we feel that supplemental agreement contains very solid benefits for Iran and that after talking to UK, we are convinced that there is no chance of UK agreeing to increase those benefits.

UK reps noted that we were both in agreement re desirability econ assistance to Iran in order bolster morale, give us peg on which to hang statement and create favorable atmosphere for urging reforms. They were somewhat apprehensive, however, that, if we proffered Eximbank loan prior ratification AIOC supplemental agreement, Iranians might be less anxious proceed with ratification. Hare emphasized critical nature of Iranian sit and need for speedy action. If AIOC difficulty cld be ironed out soon, it wld be great help but, since immediate prospect not encouraging, we shld endeavor press on with any other practicable steps. Wright agreed re urgency and wondered whether there was any way in which two forms of financial assistance might be linked together in order to bring maximum combined contribution to bear on Iranians present problems. Specifically, wld US find it possible take line with Iranians that we were studying possibility financial assistance to Iran, but that meanwhile Iran has prospect obtaining substantial benefits from AIOC agreement and that we feel they shld go ahead with this form of self help immediately. Moreover, he wondered whether it wld be preferable to approach Shah re desired reforms after announcement financial assistance or whether it wld be preferable to make such financial assistance conditional on compliance with reform suggestions.

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We agreed put these points to Dept and to Emb Tehran. UK is also putting them to their Emb Tehran and it was agreed that it wld be useful if two Ambs Tehran cld, after consulting together, give us their views on following two points:

Desirability linking together questions Eximbank loan to ratification AIOC agreement; and
Question of linking two forms of financial assistance to question social and financial reform.

Suggest Dept repeat this tel to Tehran together with section on Iran contained Secto 186 and any other appropriate background material. Also suggest Tehran’s reply shld be reviewed by Dept prior discussion with FonOff.

[Repeated] AmbEmb Tehran 18.

  1. Ante, p. 986.