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

888.2553/11–553: Telegram

No. 379
The Ambassador in the United Kingdom (Aldrich) to the Department of State¹

secret

London, November 5, 1953.

1945. Hoover arrived London from Tehran morning November 4 and reviewed Iranian oil problem with Ambassador and Embassy staff. At invitation Foreign Office, Hoover and Embassy officials attended afternoon meeting with Pierson Dixon, Chairman and R. Allen, Foreign Office, also Maude and Butler Ministry Fuel and Power; Rowan and Armstrong Treasury; Fraser, Jackson and Gass AIOC.²

Hoover’s statement summarizing experience Tehran stressed continued complexity situation and Persian confusion regarding appropriate course action. He warned against expecting rapid progress on determining useful specific proposals. Basic point of emphasis was intensity of Iranian feeling against AIOC which Hoover said precluded, in his and Ambassador Henderson’s judgment, solution providing for re-entry AIOC into Iranian oil industry except as minority member of consortium. On positive side was fact Persian desire for settlement strong and they have great appreciation seriousness their position.

After introduction on foregoing lines, paraphrase Tehran’s 1022 November 2 distributed. Reaction thereto obviously preliminary but one of general disappointment. More considered views expected meeting November 5. Gist of British comment was on inconclusive and confused nature of paper. They strongly restated their position diplomatic relations should be established soonest and prior to any negotiations. In this connection they expressed pleasure Secretary’s statement³ and Hoover emphasized Ambassador Henderson’s efforts this regard. Dixon said simultaneous agreement on “principles” and resumption relations as in memorandum not in accord British views. Had in mind going back and then seeing what could be done get company back. Fraser said consideration of solution starting from premise AIOC must be removed or reduced to minority position because of unproved charges misconduct set bad precedent for elsewhere Middle East. He too had thought correct approach was for Britain and Iran be friends again and then talk about oil matter which responsible for disturbed relations.

Hoover explained that Iranian paper only starting point and could be substantially changed in many respects. In his opinion what was required at outset was some kind of general statement regarding principles from both governments. Details compensation, management, price, off-take, etc., to be left to technical negotiators.

British wondered whether statement sufficiently indefinite to be acceptable and yet leave open questions of consortium, practical management by foreigners, etc., would be possible.

Hoover meeting Eden at lunch today and will resume meeting with government and AIOC this afternoon with smaller meetings contemplated thereafter.

Aldrich

1. Repeated to Tehran.
2. The record copy of the minutes of this meeting is in a folder entitled “Minutes of Meetings at Foreign Office on Iranian Oil”. (888.2553/4–554)
3. On Nov. 3 the Department informed the Embassy that at a press conference that day, the Secretary stated that Hoover had encouraging conversations in Tehran with the leaders of the Iranian Government; that there was evidence of renewed friendliness between the Iranian and British Governments; and that the United States hoped that this new atmosphere would lead to the resumption of diplomatic relations between the two nations. (Telegram 1117; 888.2553/11–353)