Memorandum, State Department Summary of Telegrams

NLT/NAVAL AIDE)412 the OFFICE OF THE SECRETARY OF STATE 12065, Sec. 3-402 DECLASSIFIED WASHINGTON State By Dept. DEISNIT Date 9-10-85 E.O. Guidelines, March 6, 1982 October 20, 1952 TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS IRAN Ambassador Henderson in Tehran has spoken to Prime Minister Mosadeq on a personal basis concerning his announced intention to break relations with the UK, asking Mosadeq if it would not be possible for him to delay the actual break for several days so that the US Government might complete certain studies of the situation which it had under- - taken. The Prime Minister replied that he had intended to give a note to the British Charge on Saturday which would end relations, but finally agreed to take no formal action before Wednesday, October 22. Later the same day, Mosadeq called in Ambassador Henderson's interpreter and asked him to make it clear that it would be impossible for Mosadeq to accept any proposal involving submission of the matter of compensation to an international court unless the proposal included the payment of twenty million pounds convertible sterling in advance. Ambassador Henderson has asked for the outline of a formula which he might try out on Mosadeq before Wednesday since he believes it would be preferable to get his reaction to the way we are thinking before we perfect some scheme which is totally unacceptable to him. He suggests that he tell Mosadeq we are working on plans along the following lines: 1) all claims and counterclaims for compensation to be extinguished except that for a period of ten years the National Iranian Oil Company would deliver to the AIOC a specific number of tons of oil annually; 2) the AIOC to make available immediately on signing the agreement a specific sum as a loan to the Iranian Government to be paid back over a specific period by delivery free to AIOC of an additional amount of oil annually; and 3) AIOC to agree to purchase from NIOC a specific amount of oil annually over a period of ten years which would give AIOC only reasonable profits. TOP SECRET SECURITY INF ORMATION