261. Telegram From the Embassy in Iran to the Department of State1

333. Embassy received unconfirmed report from good source Shah in dismissing Mosadeq issued royal decree appointing General Zahedi Prime Minister. Reports also received Acting Minister Court Amini and other court officials arrested this morning.

Up to 9:30 a.m. city appears calm, extra police on duty, with tanks and truck loads security forces around royal palaces and Prime Minister’s residence. Embassy eyewitness reports seeing orderly crowd approximately 200 proceeding toward Baharestan Square waving Iranian flags.

Prime Minister’s office phoned Embassy 8:45 a.m. advising Embassy and Point IV close as trouble expected. Appropriate instructions issued.

Rumors now prevalent and received by varied Embassy sources to effect alleged coup inspired by government. Reasoning behind this general impression is this action necessary give Mosadeq excuse move against Shah.

  1. Source: Central Intelligence Agency, DDO Files, Job 79–01228A, Box 11, Folder 14, Iran 1951–1953. Restricted; Security Information; NIACT. Repeated to London NIACT and to Beirut NIACT for Ambassador Henderson. Received at 4:28 a.m.