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

888.2553/2–354: Telegram

No. 418
The Ambassador in the United Kingdom (Aldrich) to the Department of State¹

secret
priority

London, February 3, 1954—7 p.m.

3314. Limit distribution. From Hoover. At several small meetings this week involving Sir Harold Caccia (replacing Sir Pierson Dixon at Foreign Office effective February 1) and/or Maud of Ministry Fuel and Power on HMG side, and Butterworth and/or Hoover on US side, present situation appears following:

1. Official attitude HMG and AIOC continues that (a) AIOC should have minimum 50 per cent participation in consortium with tacit assumption of dominance in management, and (b) that consortium negotiating team headed by AIOC should go Tehran in approximately one month to start final negotiations with Iran Government determine simultaneously (1) maximum participation AIOC may obtain and (2) other remaining terms of agreement.

2. Some encouraging indications that HMG considering modification above attitude, but action by no means certain since such change would require Cabinet decision.

3. Caccia and Maud appeared attach considerable significance our statements that US Government did not desire (a) to reduce participation of AIOC for purpose of obtaining greater share for US companies and (b) that US companies should have larger share than AIOC.

4. I considering return Washington next few days, unless advised contrary, for purpose discussion US position and future policies with Department and heads US companies.

Aldrich

1. Repeated to Tehran.