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90. Telegram From the Embassy in the United Kingdom to the Department of State1

358. In continued absence Eden and Strang, I saw Makins and Bowker this morning and made points contained Deptel 431, July 18.2

Their tentative reactions, which are being sent to Eden in country and to which they hope have his reaction later today, are as fols: FonOff agrees in principle it wld be desirable extend finan assistance Qavam and that US shld furnish it. They feel strongly, however, that amt of aid shld be minimum necessary to enable Qavam meet his immed finan difficulties. They feel it is desirable that aid be tied to oil settlement, but stress that it shld be connected only in genl way and not (rpt not) with Iran acceptance any specific proposals.

I said I did not (rpt not) think there was any difference between us on either of foregoing points. Dept had stressed in its instrs to me that only question at issue is extending small amt of aid as interim stop-gap measure without promise any more will be forthcoming. Re tying aid to oil settlement, I said this wld be done only in genl way by making it [Page 279]clear to Qavam that help was only for interim period necess for him to arrange negots.

Makins went on to say there are two points of tactics which require careful consideration. Firstly, FonOff feels there shld be public Iranian request before we announce any such aid. In this same connection, it wld probably be best from Qavam’s point of view if publicity minimized. Secondly, there is question of timing of any announcement. FonOff feels these questions shld be fully discussed with Qavam in advance any announcement in order assure tactics are worked out in manner which will be most calculated help him and minimize opposition attempts exploit sitn by representing aid as indication US and UK brought him to power. FonOff will let us know later today of Eden’s reactions and we shall then inform Dept. FonOff will also be notifying Brit Emb Wash.

Gifford
  1. Source: National Archives, RG 59, Central Files 1950–1954, 888.10/7–1952. Top Secret; Security Information; NIACT. Repeated to Tehran. Received at 1:45 p.m.
  2. The reference to telegram 431 is in error. The correct reference should be to telegram 421, July 18, in which Acheson suggested to the Embassy in London that “you also emphasize to Fonoff we consider it essential Brit Govt be prepared reopen negots early date and have ready proposals likely be acceptable to new Iran Cabinet.” (Ibid.)