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DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON March 17, 1949 SUMMARY OF TELEGRAMS IRAN Our Ambassador in Tehran states that the Soviet propaganda build-up against Iran is so similar to that which preceded the annexation of the Baltic states as to be alarming. He says that the Soviets have established a juridical case for intervention in Iran under the treaty of 1921 and that, in his opinion, the question of their return to Iran is only one of timing. He points out that the USSR might well make a move in Iran in order to regain the initiative after its recent setbacks and, particularly, the conclusion of the North Atlantic pact and believes that the Soviets might well be able to reoccupy Azerbaijan and terrorize the Iranian government into removing itself from the western orbit without the risk of a shooting war. CHINA Acting President Li has requested that the US resume shipment of military equipment procured here by the Chinese government and hopes that it will be possible to recommence deliveries to Chinese ports as soon as possible; our Embassy in Nanking recommends that we comply with this request. MILITARY AID The Western Union Foreign Ministers have given Douglas a reply to our proposals on the military aid program which he regards as being very satisfactory. No direct request for US aid is made in the document which states instead that the Western Union countries would be glad to know whether we wish to participate in a common defense program and to have our views if we should wish to do so. In the course of discussions with Douglas, Bevin, acting as spokesman for the other ministers, emphasized the solidarity of the group, with particular reference to the situation of the Dutch as regards Indonesia. Although the final reply as received by Douglas explicitly accepts the principle of reciprocal aid, Bevin was averse to the acceptance of this principle in the document, saying that the Western Union countries are accepting grave risks and that he hoped that the US would not overemphasize the material DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 T By NLT- He NARS, Date 11.13.to