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12 DE the TOP SECRET -2- em #352, July 24, 3 pomo, from Tehran appear to be returning only in a different form. His first response was that in fact if not (rpt not) form this was inevitable. I said that in my opinion a change of both form and substance was necessary; that on form use of language conforming as far as possible to Iranian public sensibilities was particularly importants and that on sub- stance British should negot with flexibility, bearing in mind necessity of efficient operations but recognizing that Iranians must have more participation in policy principles than contemplated by Jackson proposal for several directors in operating company. He showed particular interest in what Levy and I had con- stantly told the Iranians regarding essentials which they would have to accept as basis for arrangement and asked if Iranians had accepted these. I told him I could not (rpt not) give a definite answer but pointed out that Iranians were asking for meeting even though they know clearly my position and had frequently stated that if the British mis- sion came to Tehran, they were hopeful a solution could be negotiated. When I told him I was prepared to go to London if advisable, he agreed there would be a "psychological let-down" 80 if I left here. He said he would get all of the above off to London. Al- though his general attitude appeared to be receptive, I obtained no (rpt no) clue as to what his ecommendations will be regarding British reply. I hope Gifford, without awaiting instrs from Washington, will now (rpt now) inform British that he is prepared to discuss Iranian proposal with them after they have received message from their Ambassador here and hopes they will not (rpt not) formulate reply before he has had opportunity to discuss it fully with them. I suggest Gifford urge British reply in form and spirit which Iranians can accept and be conducive to most friendly atmosphere for negotiations on arrival British mission. 22 GRADY pago MAM: EW NOTE: Repetition has been requested on above garbled portion. D-X 831 the of 21016 -TOP SECRET

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    "ocrText": "12\nDE the\nTOP SECRET\n-2- em #352, July 24, 3 pomo, from Tehran\nappear to be returning only in a different form. His first\nresponse was that in fact if not (rpt not) form this was\ninevitable. I said that in my opinion a change of both\nform and substance was necessary; that on form use of\nlanguage conforming as far as possible to Iranian public\nsensibilities was particularly importants and that on sub-\nstance British should negot with flexibility, bearing in\nmind necessity of efficient operations but recognizing that\nIranians must have more participation in policy principles\nthan contemplated by Jackson proposal for several directors\nin operating company.\nHe showed particular interest in what Levy and I had con-\nstantly told the Iranians regarding essentials which they\nwould have to accept as basis for arrangement and asked if\nIranians had accepted these. I told him I could not (rpt\nnot) give a definite answer but pointed out that Iranians\nwere asking for meeting even though they know clearly my\nposition and had frequently stated that if the British mis-\nsion came to Tehran, they were hopeful a solution could be\nnegotiated.\nWhen I told him I was prepared to go to London if advisable,\nhe agreed there would be a \"psychological let-down\" 80 if I\nleft here.\nHe said he would get all of the above off to London. Al-\nthough his general attitude appeared to be receptive, I\nobtained no (rpt no) clue as to what his ecommendations\nwill be regarding British reply.\nI hope Gifford, without awaiting instrs from Washington, will\nnow (rpt now) inform British that he is prepared to discuss\nIranian proposal with them after they have received message\nfrom their Ambassador here and hopes they will not (rpt not)\nformulate reply before he has had opportunity to discuss it\nfully with them. I suggest Gifford urge British reply in\nform and spirit which Iranians can accept and be conducive to\nmost friendly atmosphere for negotiations on arrival British\nmission.\n22\nGRADY\npago\nMAM: EW\nNOTE: Repetition has been requested on above garbled portion.\nD-X\n831\nthe\nof 21016\n-TOP SECRET"
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