No. 193
Memorandum of Telephone Conversation, by the Secretary of State1

top secret


  • Mr. Acheson
  • President Truman

I called the President at 10:30 this morning on the subject of Iran. I told him that I consider the situation to be very critical there and in an effort to save the situation I wished to take up with the British the possibility of proceeding immediately upon a plan that involved three basic points. I stated to the President that these points were as follows:

The US would make immediately available to Iran $10,000,000 in grant assistance.
The British would agree to purchase the oil presently stored in Iran at a suitable discount.
Mosadeq should agree that an international arbitration commission should be established to consider the question of compensation to the British.

I explained to the President that we had recently, … considered with the various Departments the question of providing 26,000,000 in dollar assistance to Iran and recalled that I had mentioned this to him at the time. We had not proceeded upon this.… I indicated to the President that I had not had the time to clear with other interested agencies the question of the US now making available $10,000,000 and wished to know his views before I discussed the matter with the British.

The President approved proceeding with such discussions on the basis that the US Government would furnish this amount of assistance.

  1. Drafted by Byroade.