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

888.2553/9–2651: Telegram

No. 90
The Secretary of State to the Embassy in Iran ¹

secret
priority

Washington , September 26, 1951—9 p.m.

656. Brit Amb handed Secy this morning msg from Attlee to Pres Truman, text of which transmitted immed preceding tel.²

Amb was told that altho we wld support Brit position to extent of associating USGov with Shepherd’s representation as to seriousness of situation imposed by Govt’s proposed action re expulsion remaining Brit personnel, we cld not do so in relation to his precise recommendations since we did not in fact know what they wld be.

In view urgency immediate approach to Shah on this question, earnestly hope appointment with him can be made today if possible. If feasible, suggest date for presentation credentials be moved forward; otherwise it may be possible to arrange informal mtg in advance presentation of credentials. Shah shld be advised along fol lines:

1. That USGov greatly concerned re proposed action of IranGov in forcing Brit personnel in Abadan to evacuate. Such drastic unilateral action wld cause unfavorable reaction against Iran in world opinion, wld aggravate already serious situation in Iran, and in all probability wld make impossible resumption of negots with Brit leading to amicable settlement of oil controversy. Expulsion of Brit staff wld in our opinion make it more rather than less difficult obtain other competent fon technicians to replace them, and the technicians themselves, already trained and willing under suitable conditions to stay in Iran, wld probably be permanently lost. Shah himself is fully aware of consequences on economy of Iran of no early settlement looking toward resumption of production, refining and sale of oil. Severe measures proposed by IranGov wld be retrogressive step at time parties to controversy shld be seeking ways to find real solution.

2. That you recognize difficulties Shah faces in preventing expulsion order being implemented and do not wish advise him as to precise nature of action which he might take in circumstances. Nevertheless we hope that in light of gravity of situation he will be able take some effective action.

3. That while you are convinced Brit sincerely desire reach amicable solution to controversy, proposals thus far put forward by IranGov wld not provide reasonable basis for resumption of negots, and there is serious doubt that successful negots with Mosadeq are possible. It is most important, however, that Mosadeq not take any action which wld render it impossible for Iran and Great Britain to find solution through some successor govt if this in fact proves impossible with Mosadeq. While decision as to whether Mosadeq shld be replaced at this time is entirely up to Shah to make, he shld be strongly encouraged if he feels he is in position to bring this about.

4. That you recognize it might be easier for Shah to take action in relation to immediate problem of expulsion of Brit technicians and also that it might be easier to reach final settlement if some new element were injected into situation and ask for suggestions he might have which might make these easier. Particularly you might inquire whether he has any suggestion for next move which might result in resumption effective negots and indicate that we stand ready to assist in any way possible. This connection Shah may be told that US will assist Iran in obtaining agreement which wld eliminate any interference in internal affairs on part of oil co and one which wld provide to Iran net profit as high as that recd by any other country under comparable circumstances.

It is realized that urgent mtg with Shah may require some explanation to IranGov. It is suggested, therefore, that you also seek mtg with PriMin to discuss matter with him, and follow line suggested in para 1 above urging that PriMin reconsider his proposed action and take no steps at this time which wld further aggravate situation. You will know best how to deal with this aspect, but you may wish to tell Mosadeq that in view of great importance which US attaches to this matter you have been instructed to convey our concern to Shah as well as to PriMin.³

Acheson

1. Drafted by McGhee and Rountree and approved by Secretary Acheson and President Truman. Repeated to London. The last page of the source text is initialed by McGhee and Perkins.
2. Telegram 655, supra .
3. On Sept. 26 Secretary of Defense Lovett called Secretary Acheson to report that he had just been visited by British Air Chief Marshal Sir William Elliot, who “obviously had some sort of alert or warning from his General Staff or from British military quarters, in connection with the ejection note.” Elliot indicated to Lovett that the Iranian situation was headed for real trouble and outlined the problems of ejection or troop landings, along the lines set forth by Attlee in his note to President Truman. Lovett told Elliot: “the British are operating on bad intelligence, and think they can handle the situation, when in fact the danger is that they cannot do so any more successfully than they were able to handle the Arabian-Palestine situation.” (Memorandum, Sept. 26; 888.2553/9–2651)