Memorandum, State Department Summary of Telegrams

HLT(Naval Aide) 289 OFFICE OF THE SECRETARY OF STATE the WASHINGTON DECLASSIFIED E.O. 12065, Sec. 3-402 November 29, 1951 State Dept. Guidelines, March 6, 1982 9-6-85 By DEB NTT, Date TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS IRAN In a conversation in Tehran yesterday with the British Charge, Mr. Middleton, the latter told Ambassador Henderson that he was under instructions to see the Shah within the next few days in order to point out to him the increasing dan- ger of Communist activities in Iran which, according to first-hand British reports, have greatly improved in organization and have penetrated cer tain Iranian civilian agencies and military institutions. Turning to the political situation, Middleton said the Embassy feared that if Mosadeq carried out his plan for holding elections the result would be to eliminate the moderate elements from the Majlis and to pack it with emotional, ig- norant national extremists and groups willing to look to Russia for leader - ship. Middleton said that elections would probably come within ten days and unless meanwhile something could be done to replace Mosadeq it would be extremely difficult, if not impossible, to bring about a reason- able government in the foreseeable future. Middleton felt he must take advantage of his conversation with the Shah to suggest that the time had come for the Shah to have Mosadeq replaced. Middleton said he intended to ask Eden at once for the authority to take this step, but before doing so he would like to ascertain what the US position would be. Henderson replied that he was by no means sure that it would be in our joint interest for the US at this juncture to join the UK in pressing the Shah to change the government. Henderson also said he felt that if the change were eif- fected the National Front opposition would be both anti-American as well as anti-British and might succeed in eliminating the Crown. Henderson said however that if the British should nevertheless make the suggestion to the Shah and the Shah or Ala should ask Henderson's opinion, he would not "wet blanket" the idea even though he would not support it. During a conversation with Mosadeq on Tues- - day, Mosadeq told Ambassador Henderson he was beginning to wonder whether any agreement between Iran and the UK was possible. He also indicated that he was thinking of having the nationalization law amended to permit Iran to sell oil to any interested country rather than merely to former customers. Mosadeq said he had reason to believe Iran could TOP SECRET SECURITY INFORMA FION