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a DE MODTY TOP SBORITT -2-, 705, August 19, 10 a.m., from Tehran. asked to come to negotiate. In specific reply to some of Iran's comments I stated that I did not (rpt not) consider these proposals as disguise. British were negotiating in good faith and in my opinion proper safeguards could be agreed to which would protect Iran interests and establish appropriate control by NIOC. I said that Levy and I would be glad to discuss details of this with Iran group should they wish to do so and I had had similar informal talks with Stokes. In this manner Irans could get Levy's advice as to manner in which proper arrangements could be made in con- formance to practical aspects of oil business. Since Irans had talked of oil installations as Iran Govt property and had referred rather generally to compensation, I stated that I could not (rpt not) become involved in details of compensation but that I felt I shld state my govt's position on nationalization We recognized right of any govt to nationalize Con-owned property providing either mutually satisfactory arrangements were worked out with previous owners or prompt and adequate compensation was made. We recognized right of hationalization but not (rpt not) right of confiscation. I said I felt sure that these princi- ples were accepted by Iran group and that as there were no (rpt no) funds available to make adequate prompt compensation they would work out mutually satisfactory arrangements with British interests. After I finished Stokes sent me a note saying it was vital that I state Brit proposals had my full support and came within the formula. As I felt my position stated above was clear and as far as I should go at this time I made no (rpt no) further comment on this aspect. In my opinion arrangements under British-proposa] can be worked out to result in either camouflage for complete return of British control or adequate recognition of NIOC's right to appropriate control, safeguarding against practices which Irans objected to in past. VMBVR2YDOB At close of meeting Irans handed Stokes written reply to his E proposals. This was in Iranian language and I will not (rpt not) get translation until tomorrow morning. It was agreed e that this reply wld be released at 9 p.m. Tehran time Sunday. After considering contents of Iran reply I will decide as whether I should make statement to press and the form of such gago statement. My problem is that if I do not (rpt not) make a statement my silence will be interpreted by Irans that I do MEY not (rpt not) consider Brit proposal conforms with formula. I am afraid that this will mean that they will make no (rpt no) genuine attempt to come to agreement and expect us to bail them out after break with British. On the other hand it is difficult to find language which will reasonably satisfy Brit and not (rpt not) give Irans impression that I have "sold out" to British. GRADY LMS : RT

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218719552
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Type
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Page context
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    "ocrText": "a\nDE\nMODTY\nTOP SBORITT\n-2-, 705, August 19, 10 a.m., from Tehran.\nasked to come to negotiate. In specific reply to some of\nIran's comments I stated that I did not (rpt not) consider\nthese proposals as disguise. British were negotiating\nin\ngood faith and in my opinion proper safeguards could be\nagreed to which would protect Iran interests and establish\nappropriate control by NIOC. I said that Levy and I would\nbe glad to discuss details of this with Iran group should\nthey wish to do so and I had had similar informal talks with\nStokes. In this manner Irans could get Levy's advice as to\nmanner in which proper arrangements could be made in con-\nformance to practical aspects of oil business.\nSince Irans had talked of oil installations as Iran Govt\nproperty and had referred rather generally to compensation,\nI stated that I could not (rpt not) become involved in\ndetails of compensation but that I felt I shld state my\ngovt's position on nationalization We recognized right of\nany govt to nationalize Con-owned property providing either\nmutually satisfactory arrangements were worked out with\nprevious owners or prompt and adequate compensation was made.\nWe recognized right of hationalization but not (rpt not)\nright of confiscation. I said I felt sure that these princi-\nples were accepted by Iran group and that as there were no\n(rpt no) funds available to make adequate prompt compensation\nthey would work out mutually satisfactory arrangements with\nBritish interests. After I finished Stokes sent me a note\nsaying it was vital that I state Brit proposals had my full\nsupport and came within the formula. As I felt my position\nstated above was clear and as far as I should go at this time\nI made no (rpt no) further comment on this aspect. In my\nopinion arrangements under British-proposa] can be worked out\nto result in either camouflage for complete return of British\ncontrol or adequate recognition of NIOC's right to appropriate\ncontrol, safeguarding against practices which Irans objected\nto in past.\nVMBVR2YDOB\nAt close of meeting Irans handed Stokes written reply to his\nE\nproposals. This was in Iranian language and I will not (rpt\nnot) get translation until tomorrow morning. It was agreed\ne\nthat this reply wld be released at 9 p.m. Tehran time Sunday.\nAfter considering contents of Iran reply I will decide\nas\nwhether I should make statement to press and the form of such\ngago\nstatement. My problem is that if I do not (rpt not) make a\nstatement my silence will be interpreted by Irans that I do\nMEY\nnot (rpt not) consider Brit proposal conforms with formula.\nI am afraid that this will mean that they will make no (rpt no)\ngenuine attempt to come to agreement and expect us to bail them\nout after break with British. On the other hand it is difficult\nto find language which will reasonably satisfy Brit and not\n(rpt not) give Irans impression that I have \"sold out\" to\nBritish.\nGRADY\nLMS : RT"
}