888.10/12–1952: Telegram
No. 253
The Ambassador in France (Dunn) to the Department of
State1
3582. For the Secretary and Nitze eyes only. Eden asked me to come and see him this morning at British Embassy. Referring to Nitze’s report that the Export-Import Bank were reviving the request for $25 million loan to Persia and might take action on Monday December 22, he said that he wished to urge in the strongest manner that any action on this loan be postponed at least for present.
He said that although this loan, as he understands it, would not make any liquid funds available to Persian Government it would be impossible to explain that to British public and general impression would be that this new loan would make it possible for Mosadeq to make more rigid his position and thus to hold out for the present in any negotiations which might be undertaken as a result of recent Anglo-American conversations.
He said further that if this loan were acted upon favorably he would be presented with the question whether he had been informed of this possibility before action was taken and, if so, what his reaction had been. He said that he would have to announce that he had urged most strongly that loan not be granted at this time, and result would be to cause some questioning as to whether we were really working together on proposed plan.2
- The Department repeated this telegram to London on Dec. 20. (888.10/12–1952)↩
- Telegram 4149 to London, Dec. 20, reads in part as follows: “Afternoon Dec 19 Steel and Burrows presented arguments to Dept re Exim Bank loan Iran similar to those made by Eden (see Paris 3582, being rptd Lon by Dept). Decision made to cancel Mon Dec 22 mtg of Bank and defer consideration loan. Henderson will carry through effort to persuade Mosadeq accept principle arbitration as contemplated Paris discussion with Eden.” (888.10/12–1952)↩