Telegram from Ambassador Henry Grady to Secretary of State Dean Acheson, Number 709
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OCR Page 1 of 2NLT (PDF-SUBJ.)302
INCOMING TELEGRAM
Department of State Copy 1002
TELEGRAPH BRANCH
593
D-X
TAP SECRET
A
Action
Control: 9977
Rec'd:
August 19, 1951
NEA
FROM: Tehran
ARCHIVES SERVICE RECORDS 'NATIONÄL AND
3:35 p.m.
Info
TO:
Secretary of State
DICLASSIFIED
SS
E.O. 11652, Sec. 3(E) you
G
NO:
709, August 19, 7 p.m.
Dept. of State letter,
EUR
Ex
E
pa anz. He SECT Nans NLT Kitz H
DC)
PRIORITY
FROM HARRIMAN TO FRESIDENT AND SECRETARY.
NO DISTRIBUTION EXCEPT BY DIRECTION OF OFFICE.
Fol is substance of remarks which I made a.t mtg between
Brit mission and Iran negot comite this morning, as
reported in my earlier tel today :
"Prior arrival Brit del I repeatedly stated, and Levy
explained in detail, that:
(A) Iran oil industry in order to be able to sell its oil
in world markets, must make arrangements with large organiza-
tion that cld make avail transport and distr for marketing
Iran oil on world -wide basis. Iran cannot obtain higher
income from its oil operation than other producing countries
in comparable circumstances Otherwise, company wld make
such arrangements but wld buy or develop oil in other
producing countries. Brit interests are only ones that
are in position to market large quantities Iran oil.
(B) Iran Govt, a.s it has stated itself, depends on fon
technical assistance for operation its oil industry within
Iran, and must have continuous access to ever advancing
oil technology of world. I have constantly stated this
on
technical assistance cannot be obtained thru employment
individual technicians but that competent management org
is required, working under contract for and on behalf of
NIOC. This arrangement well known and accepted throughout
world not only in oil industry but in other business rela
tionships. Aside from Iran's need for management, technicians
themselves wld not come to Iran or any other country except
under arrangements satis to them. They are free men.
Brit proposals provide good basis for negot for fair
settlement. They conform to formula, submitted thru mes
under which Brit were asked to come to negot. Iran Govt
in its reply has read into proposals concepts which were
not intended. Brit proposals contemplated negots to work
out specific arrangements under principles stated Iran
Govt
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