Memorandum, State Department Summary of Telegrams

MLICNAVaLA:de/210 OFFICE OF THE SECRETARY OF STATE WASHINGTON DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guidelines, March 6, 1982 June 4, 1951 By DEB NLT, Date 9-5-85 T S SUMMARY OF TELEGRAMS IRAN From London Ambassador Gifford reports that the Anglo-Iraniar Oil Company has in- formed the Iranian Government that, although it is impossible to formu- late proposals for discussion within the five-day period stipulated by the Iranians, the company will send representatives to Tehran for discussions as soon as possible thereafter. The British Foreign Office envisages that when the discussions are held, efforts will be made to identify and clarify the problems involved in nationalization before proceeding to definitive proposals in the hope of weaning the Iranians away from the narrow frame- work of the nationalization law. The British Ambassador in Tehran is also being instructed to inform the Iranian Prime Minister that the com- pany's communication has the UK Government's full approval, making clear at the same time that the UK cannot accept Iran's contention that the present dispute is purely a matter between the Iranian Government and the oil company. Meanwhile, in a conversation between Gifford and British Foreign Secretary Morrison, the latter referred to the inter- - relationship between the situations in Iran, in Egypt, and in the whole Near East. He felt that some firmness was required and indicated his concern over growing talk in Egypt of nationalization of the Suez Canal. Morrison asked that we bear in mind British public opinion on Iran and Egypt and not try to push the UK too much. Ambassador Grady in Tehran believes that the Iranian Prime Minister is determined to carry through with his program, no matter what happens, and that the British will have to abandon the legal approach and endeavor to get a practical and realistic approach, in- volving real concessions, if they are to salvage even part of their oil interests in Iran. REECE-TURKEY - Our Embassy in Moscow comments that there could hardly be a development more encourag- ing to Soviet hopes to disrupt free world unity and determination to resist