Foreign Relations of the United States, 1952–1954, Iran, 1951–1954, Volume X

888.2553/10–21152: Telegram

No. 231
The Ambassador in Iran (Henderson) to the Department of State¹

top secret
niact

Tehran, October 21, 1952—6 p.m.

1633. Eyes only Byroade.

1. I called on Prime Minister this afternoon 4 p.m. and talked to him along lines suggested Deptel 977, October 20.²Mosadeq was courteous and apparently unruffled. He said he deeply regretted that US Government had not been able, in time allotted, to develop any ideas which it could put forward in form of proposals. He was not, however, particularly surprised since he appreciated fact that it was not easy to find formula which could give promise of bridging gap between UK and Iran. He would always be ready to receive suggestions which in opinion of US would be acceptable to both parties.

2. When I said that in opinion of US Government major problems of oil dispute seemed to be settled and there now remain only questions of compensation and commercial arrangements for sale of Iranian oil which should not prove insuperable obstacles to settlement, he remarked that although some progress had been made in matter of principle there were economic aspects of problem just as important as those of principle. For instance, Iran needed funds immediately and any settlement of oil dispute which did not provide them would yield no benefit to Iran.

3. When I told him that in opinion of US Government break in relations with UK would not contribute to settlement of Iran’s problems he said that he did not like to make break; he would prefer to continue relations; but in face of internal difficulties which country is sure to encounter in absence of oil settlement and receipt of needed funds from AIOC was too dangerous to permit British representatives to continue to remain in Iran. Basing himself on past experience he could not believe that those representatives would not stimulate opposition by force to Iranian Government. I have argued this point with him so many times that I considered it useless to endeavor persuade him that his fears were groundless. I merely said that I deeply regretted that he continued entertain them.

4. As I was leaving he said he would like to ask me question; was there any reason why he should not break relations this evening rather than wait until tomorrow.³ I told him that if he wanted my advice it would be not to break them at all, but in no event should he break them this evening. There did not seem to me to be anything to be gained by taking action on spur of moment.

Henderson

1. Repeated to London eyes only for Gifford and Nitze.
2. Not printed. (888.2553/10–2052)
3. The Government of Iran severed relations with the United Kingdom the following day, Oct. 22. The text of the letter sent from the Iranian Foreign Office to the British Embassy in Tehran was transmitted to the Department in telegram 1679 from Tehran, Oct. 24. (888.2553/10–2452)