661.88/7–2550: Telegram
The Ambassador in Iran (Grady) to the Secretary of State
216. Prime Minister told me yesterday that he had had yesterday morning a visit from the Russian Ambassador1 at the latter’s request. Russian Ambassador stated that he had come to say on behalf of his government that they were most anxious to be of any assistance possible to Iran. This statement of good will came as a considerable surprise to the Prime Minister because he has been in office four weeks and had received no courtesy call from Russian Ambassador; in fact Russian Ambassador has not called on any Prime Minister of Iran for as long as anybody can remember.
Prime Minister replied that he was glad to hear that the Russian Government was anxious to be helpful to Iran and said that he would [Page 575] at once suggest two things: first, that Russia release the officer and eight soldiers now held prisoners in Russia and, second, that the gold which belongs to Iran and is now held in Russia be sent to Iran.
Russian Ambassador made no comment with regard to these two points, but went on to say that Russia was anxious to resume normal trade relations with Iran, stating that two years ago a memo had been left with Iran Government on this matter but no action had resulted. Prime Minister stated that Iran was willing consider trade with Russia but that it would be impossible for Iran to pay Russia in foreign exchange for purchases made in that country; that if there was to be any trade it would have to be on a barter basis; that Iran had certain products in surplus in its northern provinces which could be made available to Russia; that these are rice, fresh fruits, and cotton in limited quantities. In exchange, she would want iron ore, cement and certain manufactures.
The Prime Minister asked me how I interpreted this démarche of the Russian Ambassador and I said that it was the peace offensive tactic.2