888.2553/4–352: Telegram

No. 169
The Secretary of State to the Embassy in Iran1


2146. Internatl Bank issued release press today stating there have been no new developments Bank’s negots since joint communiqué; that Bank’s mission has returned and made its report; that [Page 371] present status is negots recessed not terminated; and that Bank stands ready assist working out any practicable suggestion which offers any reasonable prospect success. Accompanying statement is lengthy review oil controversy and role played by Bank.2

Dept wld have preferred review negots not be issued and so informed Bank. Bank, however, considered it necessary for nr reasons set forth record its activities and has been encouraged do so by Brit Govt. While review substantially accurate it may give impression blame placed largely on Irans, and we fear it may result in improbability future re-entry into picture on part Bank. Iran reaction detailed points at issue as set forth in statement may also greatly enhance difficulty any future negots for Irans retreat from position taken by Mosadeq.

If matter arises in conversation with Iran officials, you may wish take line Bank probably felt obliged by very character its org recount in full its various activities and in view suspension conversations in Iran it believed it had make statement this sort. Statement does not however mean Bank unwilling resume discussions.

Dept believes it best Emb not publicize review itself or distribute it through official US informational media. No objection however distribution introductory release explaining Bank’s present position summarized first para.

FYI, Garner consulted Senator Busheri’s son, Iran Rep on Bank, who did not anticipate adverse reaction to statement. Realize of course he not in position reflect Iran viewpoint.

  1. Repeated priority to London. Drafted by C. Vaughan Ferguson and approved by Rountree.
  2. Neither the Bank’s press release nor its accompanying statement is printed. (888.2553/4–352)