Office of the Historian

888.2553/4–654: Telegram

No. 453
The Ambassador in Iran (Henderson) to the Department of State1

secret
niact
Tehran, April 6, 1954—3 p.m.

2067. Limited distribution. From Hoover. Re questions raised in London telegram 4354 to Department (repeated Tehran 204), my comments follow:

1.
It should be borne in mind constantly that document entitled memorandum of understanding together with exchange of letters will at some future time become public property, or will at least come into possession of Iranian Government. Therefore believe general tone of document, in addition to its actual contents, should be matter of careful consideration. While only restricted excerpts could be included in reference telegram, it my impression that legal terminology and occasional choice of words might be reviewed to good advantage in London from standpoint of subsequent public relations in Iran. For example would suggest use some other word than “indemnify” in quoted passages of document if suitable alternative available.
2.
See no objection to quoted passage identified as paragraph (2) of document, namely “and if settlement is come to between HMG and Government of Iran”, upon which London specifically requests comment, if this satisfactory to US companies. Desire of latter to have escape clause in event that in their opinion, or that of US Government, compensation matter had prejudiced durability of consortium agreement would appear be satisfied by first part of same sentence, namely “if new agreement is made by consortium, et cetera.” In other words they have option not to accept agreement if they believe it will not prove durable.
3.
In proposed exchange of letters, it would appear desirable, if possible, that no mention be made whatsoever to any agreement or understanding between HMG and USG on subject of compensation for loss and damages, whether reference is made to specific dates or otherwise. It my memory that HMG was most emphatic that no mention be made of such agreement when discussing subject, and we concurred. See my paragraph (1) above re effect on Iranian public opinion in event of unauthorized publication.
4.
In re clauses covering admission of US independents, see separate Embtel to follow immediately.2

Henderson
  1. Repeated to London.↩
  2. Reference is to telegram 2069, Apr. 6, not printed. (888.2553/4–654)↩