788.00/5–2650: Telegram
The Ambassador in Iran (Wiley) to the Secretary of State
968. Saw Shah last night and infomed him of President’s designation Ambassador Grady to succeed me here.1 I emphasized Ambassador Grady had great knowledge Middle East affairs, had done superb job in Greece under most difficult conditions, and that I believed there would be an immediate meeting of minds and establishment of mutual sympathies between him and Shah.
Discussing internal Iranian situation I referred to rumor Ali Mansur had wanted to resign previous day. Shah said that was not quite true but stated Mansur was frightened of Mossadeq, head of National Front. Shah then followed with strong attack against Mossadeq, pointing out that latter’s policies and negative program of that politician are disruptive, destructive and encouraged subversive influences.
Continuing, Shah next attacked Seyid Zia-Ed-Din stating that if he were made Prime Minister he could accomplish nothing. He made no comments re Razmara or Minister Interior Ardalan.
He indicated that he would insist Mansur submit AIOC revision to Parliament and stand or fall on issue. He had no reply when I inquired re future Mansur Government if successful on AIOC.
Shah painted depressing picture of financial position of Government mentioning probable budget deficit of five billion rials adding Iran was reaching state of anarchy. However, he affirmed that entire country stood behind him. I told him it was obvious to me entire country respected him but that there was constant criticism that he was indecisive. I added I did not sympathize with such criticism but pointed out that if situation Iran is as bad as he portrayed, strong leadership and prompt decisions were needed to prevent subversive infiltration from abroad or movement for dictatorship from within.
Shah then mentioned British, saying that while he was sure of American support, British position was to him obscure. In particular, he asked if US and British Governments were working entirely together in Iran. I answered that our relations were most cordial and harmonious without conflict in Iran of any sort.
He referred to anti-corruption campaign indicating that he is still convinced of necessity of such campaign to root out some 40,000 corrupt or surplus functionaries but present economic and political state of country makes it imperative to move carefully and he felt it prudent to proceed slowly; he did not wish to throw an additional 40,000 into Communist ranks.
[Page 558]Throughout conversation Shah seemed most pessimistic over whole situation in country but has his chin up and evidently intends to pursue energetic policy.
- Following the resignation of Ambassador Wiley, President Truman designated Henry C. Grady, U.S. Ambasssador in Greece, to be the new Ambassador to Iran.↩