Memorandum, State Department Summary of Telegrams

OFFICE OF DECLASSIFIED THE SECRETARY OF STATE E.O. 12065, Sec. 3-402 WASHINGTON State Dept. Guidelines, March 6, 1982 March 5, 1952 By DEB NLT, Date SECRE 9-9-85 SECURITY INFORMATION SUMMARY OF TELEGRAMS IRAN We have informed Embassy Tehran we seriously question the wisdom of the intention of the International Bank representative in Iran, Mr. Prudhomme, to predicate further oil discussions upon Iranian agreement to permit the Bank to employ British technicians. We believe this is not the best means of obtaining Iranian agreement to this point and that if the Iranians fail to agree, this would be politically the best point for Mosadeq to break negotiations on. We have discussed this with Bank Jice-President Garner who said it was not his intention to break negotiations on this point. Rather, Garner thought if no progress can be made, Prudhomme¹s eventual position would be that the Bank was presently unable to see a way of operating effectively unless it has full managerial authority, but that the Bank would continue to study the matter and hoped the Iranians would do likewise. Our position will be influenced by Embassy reports on the progress of negotia- - tions. However, we believe that more is to be gained by not closing the door and by continuing the talks. We explored with Garner the possibility of American companies making technicians available to assure that oil opera- - tions could be conducted on a basis which would not reflect on the Bank's standing. Our idea is that this might facilitate the gradual introduction of limited numbers of British personnel. Mr. Garner expressed interest in this idea. UNITED KINGDOM Embassy London reports that yesterday's vote within the Parliamentary Labor Party on the Bevanite motion deploring the scale of present rearmament because of its effect on the economy, aid to underdeveloped areas and reduction in social services, was important in the struggle between Bevan and Labor Party moderates. This is the first time since Parliament reassembled that an issue with Bevan has been forced to a vote and he lost by a three to one margin. As a result, the self-confidence of the labor party leadership has been restored and they now feel that they have regained the initiative and control of policy. The Embassy points out, however, that Bevan left himself an "out" in that he did not sign the left-wing motion and did not speak at the meeting. Since a vote for the motion was tantamount to vote against Atlee, the Bevanites may feel therefore, that their defeat was not too severe since, even in these circumstances, they mustered the support of one in every four members of Parliament. SEGRET SECURITY INFORMATION