700.00(S)/5–1750: Circular information telegram
The Acting Secretary of State 1 to Certain Diplomatic Offices 2
no stencil—no distribution
In US–UK subcomite mtgs London UK reps called Iran a soft spot in defense against Commie NE expansion which may constitute increasing temptation to Soviet. UK agreed with our appraisal situation (infotel) but stressed that despite Shah’s failure exercise effective leadership people still loyal to institution of throne. Hare outlined our views re remedial measures, urged UK support and asked what UK aid we eld expect. Said we felt early conclusion AIOC negots wld speed solut Iran’s present difficulties, suggesting UK give special attention to question of reserves. UK reps said Iranians had never requested specific modifications concession. If they did so, AIOC wld have to consider prob but wld not take initiative. While UK agrees polit factors inherent, it believes concession shld also be on fair commercial basis, but promised to note and consider our views.
While UK thinks long term objectives shld be pursued thru seven-year plan, declining morale necessitates short term measures. UK considering urging Shah take action on redistribution crown lands; interference with free trade unions; absentee landlordism; better labor legis; anti-corruption campaign.
In FonMins mtg Bevin agreed with See’s appraisal gravity Iran situation. Sec outlined steps we considering re improvement, raised question ratif AIOC concession, emphasizing importance getting [Page 546] agreement settled. UK FonOff official reported new UK Amb Tehran3 not pessimistic re passage and suggested to Bevin that UK make maximum effort by explanation and pressure on Iranians.
- Secretary Acheson was in London for meetings with Foreign Ministers Bevin and Schuman; for information on Acheson’s talk with Bevin on Iran and the work of the subcommittee referred to below see Secto 218, May 11, Foreign Relations, 1950, vol. iii, p. 1027.↩
- Sent to Tehran.↩
- Sir Francis Shepherd.↩