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

110.11 DU/5–2053: Telegram

No. 326
The Ambassador in Iran (Henderson) to the Department of State¹

secret

Tehran, May 20, 1953—4 p.m.

4472. Two hour conversation Mosadeq today in continuation that May 16. (Embtel 4446 May 18 to London 1445)² Discussion covering wide gamut subjects most part repetition statements exchanged during previous talks. In conclusion Mosadeq summarized as follows views which he desired conveyed Secretary:³

1. He not asking US destroy for sake Iran its worldwide cooperation with UK.

2. In view lack British interest in achieving solution problem compensation he now believes useless perhaps even inadvisable US make further effort find solution.

3. If Iran continue independent country more economic aid from US essential. He hopes US can extend such aid in so unostentatious manner as not give serious offense to British until it in position extend substantial aid openly. He certain time will come when US will wish extend considerable aid openly. That time will be (a) when change in British Government or change in UK policies will result in British Government having better understanding situation Iran; (b) when US will come realization drastic measures must be adopted if Iran not fall Commie hands. His fear is that decision US extend substantial economic aid Iran may come too late.

4. He hopes US firms will begin buy at once considerable quantities Iranian oil at present cut-rate prices. He realizes US Government itself can not make purchases in present circumstances without seriously offending British.

5. He will do utmost preserve friendly relations US regardless US decision. However negative US attitude will result deterioration Iran politically and economically.

6. He hopes British will eventually realize their former position in Iran can never be restored. No successor Iranian Government can remain long in power if it tries restore British domination Iran.

7. Iran would welcome friendly relations with UK. If UK ambitions dominate Iran should be really abandoned there should be no great difficulty in settling all problems between two countries including compensation.

Henderson

1. Also sent to London and New Delhi for the Secretary.
2. Not printed. (110.11 DU/5–1853)
3. Secretary Dulles and Mutual Security Director Stassen visited the Near and Middle East May 9–May 29. Ambassador Henderson flew to Karachi to brief Secretary Dulles on the current situation in Iran. For documentation regarding the Dulles–Stassen trip, see vol. ix, Part 1, pp. 1 ff.