Memorandum, State Department Summary of Telegrams

NeT (WAVAL AIDE) 313 SSIFIED OFFICE OF THE SECRETARY OF STATE Sec. Dept. EP 12075, Guidelines, March -, ,982 WASHINGTON State By DEB NLT, Date q-grt January 14, 1952 TOP SECRET SECURITY INFORMA TION SUMMARY OF TELEGRAMS IRAN Embassy Tehran has informed us of a private conver- sation during which representatives of the International Bank in Iran indicated that their report will include the following points: 1) nationalization of the Iranian oil industry is irrevocable; 2) the AIOC or any British technicians will not be permitted to return by the Mosadeq government or any likely successor; 3) the Iranian government is pre. - pared to discuss compensation but may present counterclaims which will equal or exceed British claims; and 4) installation at Abadan and in the oil fields are being maintained in good condition and with foreign tech- nicians under capable management could equal or exceed production under the AIOC The Embassy states that these officials believe the IBRD would find it difficult to assist except in organizing an international purchasing company to buy oil for sale to world markets. Since this would be possible only with AIOC and British agreement and since such agreement is likely only if the compensation question is settled, compen- sation is the first problem to be settled. The Embassy finds the conclusions of the Bank officials not too different from its own excepting their confidence in the ability of the Iranians to operate the oil industry. Embassy London reports that the Foreign Office is awaiting the result of the UK Ambassador Is interview with Mosadeq before deciding what reply to make to the Iranian note regarding the closing of British consulates in Iran. There is little optimism in the Foreign Office and one official stated that "obviously if Persians demand closing consulates, we must comply. " LISBON MEETING We have authorized our NATO Deputy to agree to February 16 as the latest possible date for the Lisbon North Atlantic Council meeting if after consultations with the French he believes it is unrealistic to press for an earlier date. If the French Govern- ment is not formed in time to go through with the meeting by February 16, this will have to be given as the obvious reason for further postponement which we wish at all odds to prevent if possible. TOP SECRET SECURITY INF "ORMA TION