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        "Dean Acheson Papers",
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    "seq": 11,
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    "ocrText": "5/15/548 Reel 3, Track 2, Page 11\nthat occurs all the time. We argued with the British about what we should\ndo on this thing. We took a position which they weren't ready to agree to.\nAt one stage in the performance, they said they were ready to agree with us,\nand we would now make a joint statement of gain. A lot of our people began\nto say that we can it accpet this; we mustn't be associated again with the\nBritish in this because we had one failure; and I remember taking the position\nto say you won't\nthat it was awfully with a man who wants to agree with you.\nIt seemed to ne unsound reasoning to run away from him because he 'd given\nup his position and wanted to take ours. We did finally put forward an\n&\ny\nanswer. Eden made a reply on the 6th of October that got nowhere, and rela-\nUS\ntions were broken-diplomatic relations between Britain and Iran-on the\n17th of October. So again we had one of these\nMR.\nOn the part of Iran..\nMR. ACHESON:\nYes, Iran broke. But again we had a bad time; then we'd negotiate for a\nwhile and then they'd be broken off; and then everything gets worse again.\nYou break off the whole thing. We then came into December, after the election\nthe last weeks of the Truman administration; and then a series of discussions\ntook place which I'll go into with a little bit of detail because it throws\nsome light on where we had gotten at that time. Because these almost came\noff; I think they came very close again to coming off. What I think is\ninteresting to look at is what the problem was: it had been one thing in\nearly '51, when this started, and it had become a somewhat different proble\nby the end of '52. In the first place, Iran was in very serious financial\ntrouble. It had only money for a few weeks' operation, or so they thought\nand so we thought; and they needed some money right away, fast. In the\nsecond place, the markets for Iranian oil had gons. Other nations had filled\nup the supply. The refining capacity which had been Iran's unique contri-\nbution to the oil industry when the dispute started had ceased to be a\nunique contribution, and the refining capacity had been made up. In the"
}