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-2 - sop SECTOST INPORIZATION It followed from this that any negotiations would have to be conducted very carefully and assurances obtained that the end result would be reason- ably satisfactory from the British point of view. Sir Oliver did not think Mr. Eden intended to confront the Iranians with all of the detailed conditions in the message and in the accompanying draft terms of reference. The Ambassador admitted that the draft terms were formidable and hardly likely to be acceptable to Dr. Mosadeq. He suspected, however, that they had been drawn up separately by lawyers and could be modified on further review. We had considerable further discussion of various parts of the message, during which I made the point that it would be difficult, if not impossible, to find arbitrators who would be competent to decide upon such a question as the future conduct of the oil industry, even if such a proposal should be ac- ceptable to the Iranian Oovernment. It was agreed that the Department would study the message further and would endeavor to give the Ambassador a reply by the following evening. The Ambassador said that in view of the very informal nature of our con- versation, he did not intend to report it to London, and I said that I saw no use in telegraphing it to our Ambassador in London. you SECRET SEGURITI INFORMATION

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    "ocrText": "-2 -\nsop SECTOST INPORIZATION\nIt followed from this that any negotiations would have to be conducted\nvery carefully and assurances obtained that the end result would be reason-\nably satisfactory from the British point of view. Sir Oliver did not think\nMr. Eden intended to confront the Iranians with all of the detailed conditions\nin the message and in the accompanying draft terms of reference.\nThe Ambassador admitted that the draft terms were formidable and hardly\nlikely to be acceptable to Dr. Mosadeq. He suspected, however, that they had\nbeen drawn up separately by lawyers and could be modified on further review.\nWe had considerable further discussion of various parts of the message,\nduring which I made the point that it would be difficult, if not impossible,\nto find arbitrators who would be competent to decide upon such a question as\nthe future conduct of the oil industry, even if such a proposal should be ac-\nceptable to the Iranian Oovernment.\nIt was agreed that the Department would study the message further and\nwould endeavor to give the Ambassador a reply by the following evening.\nThe Ambassador said that in view of the very informal nature of our con-\nversation, he did not intend to report it to London, and I said that I saw no\nuse in telegraphing it to our Ambassador in London.\nyou SECRET SEGURITI INFORMATION"
}