On the morning of October 17, Secretary of State Dulles and British Foreign Secretary Eden held a discussion in London about the situation in the Middle East in general. Secto 20, October 17, reported the following regarding Iran:
“Eden told Secretary that when Parliament meets next week he intended to say something nice about new government, stressing that as Iran aware UK ready resume relations. In reply Eden’s query re present government, Secretary said Zahedi’s position seemed satisfactory for time being but something must be done to assist economically. Congress would not extend aid indefinitely. [Page 815]Eden and Secretary agreed Iran oil must start moving into world market as this was of major importance politically. British then said they were planning supply locomotives worth about 1 million pounds to Iran on extremely liberal credit terms. Outright gift would require approval Parliament.” (PPS files, lot 64 D 563, “CFM–London Oct. 1953”)
The Secretary of State was in London at this time primarily for the Tripartite Foreign Ministers meetings October 16–18, 1953. For documentation on the meetings in London, see volume VII, Part 1, pages 687 ff.