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

888.2553/7–3154: Telegram

No. 487
The Ambassador in Iran (Henderson) to the Department of State¹

secret

Tehran, July 31, 1954—3 p.m.
[Received 10:45 a.m.]

241. 1. British Ambassador tells me that agreement has been reached with Iranians re lump sum compensation, Iran to pay 25 million pounds during 10 years beginning January 1, 1957.

2. There may be some difficulties which he does not regard as serious re drafting. For instance, British draft will contain following provisions in substance:

a. Iran will owe in compensation AIOC 76 million pounds.

b. AIOC, as matter of equity, will deduct from this amount 51 million pounds (referred to in previous year as 49 million pounds) which AIOC would have paid to Iran if supplementary agreement of July 1949, had been ratified by Iran. Iranians may desire other wording.

3. Ambassador does not believe these possible differences in details would prevent reaching of agreement in principle prior to August 3.

Henderson

1. Transmitted in two sections; repeated to London.