888.2553/8–2552: Telegram

No. 209
The Acting Secretary of State to the Embassy in Iran1

top secret

479. For Chief of Mission only. Fol msgs rptd FYI only: From PriMin to Pres Aug 25:

  • “1. I am delighted we are in such close agreement. I will gladly sign TrumanChurchill cover msg.
  • 2. Barring one drafting point in annexe, which we are mentioning to State Dept,2 we hope it and msg can be delivered to Musaddiq tomorrow at latest. It wld surely be best for our two reps in Tehran to take it personally together.
  • 3. There are two points which do not alter the text of msg but which shld be agreed between US and Brit Govts and kept for record, namely:
    It is vital to us that, as mentioned in ur No. 1 of annexe, ICJ should be tribunal on compensation.
    It wld be against interests both US and Great Britain if Persians got better terms for their oil than other oil-producing countries who have kept their agreements.”

Personal msg from Pres to PriMin:

“Am gratified that we are agreed on contents of joint msg to Dr. Mosadeq. I accept change you suggest in para 2 of ur msg of 25th.

Am telegraphing Amb Henderson tonight3 to be prepared go ahead in concert with Middleton just as soon as Middleton receives ur instrs.

I agree to point you make in para 3(a).

With respect to para 3(b), I of course agree that it is in interests of both of us that basis negotiated for future flow of Persian oil not be such as to dislocate arrangements elsewhere in ME. There are of course so many complex considerations of volume, quality, location, relation to compensation, and like, that variable factors make it difficult to judge comparability of any two arrangements. Naturally, we shld want to look at concrete proposals before we cld judge their effect and reasonableness.

I want to thank you for ur understanding in handling this difficult problem.

[Page 462]

I have high hopes that solution can be reached.”

  1. Repeated to London.
  2. British Ambassador Sir Oliver Franks also received instructions on Aug. 25 to request a change of phraseology in paragraph 2 of the draft annex which President Truman wished to attach to the joint message which he proposed that he and Prime Minister Churchill send to Mosadeq. (See Document 207.) The British wished to change the phrase “for the distribution of Persian [Iranian] oil to world markets” to read “flow of oil from Persia to world markets”. (888.2553/8–2552)
  3. See telegram 481, infra.