103. Telegram From the Department of State to the Embassy in Iran1

255. Brit Emb reps called this morning to discuss complicated and ominous Iran situation. We here do not see the possibility at this time of a more constructive alternative to Mosadeq for the reasons outlined in our 585 July 26.2 However, in view of Mosadeq’s attitude as expressed in your 423 July 28 we believe that every possibility should be reexplored.3 It was therefore agreed request US-Brit Emb in Tehran make joint reappraisal situation to include (A) recommendations as to possible joint courses action by USUK; (B) possible alternatives to Mosadeq (C) methods bring such alternative to power; (D) form encouragement and support which would be necessary.

FYI Brits expressed grave concern re developments Iran and stated primary objective now is to save Iran from communism. However, at same time impression gained that Brits not yet willing capitulate entirely to Irans in oil dispute even though this position might mean loss Iran to West.

  1. Source: National Archives, RG 84, Tehran Embassy Files, 1950–1952, classified general records, Box 25. Secret; Security Information; Priority. Drafted by Stutesman; cleared in NEA by Jernegan, in S/P by Nitze; and approved by Matthews. Repeated to London.
  2. Document 99.
  3. Presumably a reference to telegram 422 from Tehran, July 28; see Document 100.