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TOT -2- CED #1099, August 28, 4 p.m. from London. 4. Our appraisal of the internal political situation in Iran indicates nationalism is a real and potent factor in the present situation. Hence we do not (rpt not) believe our objectives in Iran can be achieved if we take a course of action which would appear to place us in opposition to legitimate aspirations. While it is possible that in course of time a more reasonable govt may come to power, we believe that even if this shld occur any new govt would be subject to same pressures, including terrorism, which have greatly contributed to intransigence of present govt. 5. The US sympathizes with the UK reaction to suspension of negotiations. It is encouraging, however, that there is a basis upon which negotiations can be resumed if and when Iranian Govt assumes more realistic attitude. In the mean - time it is important that public positions taken by US and UK not (rpt not) strengthen extremists or make it politically difficult or impossible for Iranian Govt either under present or new leadership to assume conciliatory attitude. 6. We believe that coordination of our respective approaches to Iranian problem is essential, and attach great importance to the policy of prior consultation between our two govts. Desirable that the two embassies in Tehran work in closest collaboration on all phases of matter. Need not (rpt not) emphasize that we fully appreciate Britain's particular concern in oil problem. Retention of Iran in the free world is our common objective. Know British will realize that it is precisely in these interest that we believe it best to pursue the course outlined. Embassy concurs. HOLMES JRM : EW NOTE: Mr. Ferguson (NEA) notified 8/28/51 5:07 p.m. MG 200 838 TOP SEORST

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    "ocrText": "TOT\n-2- CED #1099, August 28, 4 p.m. from London.\n4. Our appraisal of the internal political situation in\nIran indicates nationalism is a real and potent factor in\nthe present situation. Hence we do not (rpt not) believe\nour objectives in Iran can be achieved if we take a course\nof action which would appear to place us in opposition to\nlegitimate aspirations. While it is possible that in\ncourse of time a more reasonable govt may come to power,\nwe believe that even if this shld occur any new govt would\nbe subject to same pressures, including terrorism, which\nhave greatly contributed to intransigence of present govt.\n5. The US sympathizes with the UK reaction to suspension\nof negotiations. It is encouraging, however, that there\nis a basis upon which negotiations can be resumed if and when\nIranian Govt assumes more realistic attitude. In the mean -\ntime it is important that public positions taken by US and\nUK not (rpt not) strengthen extremists or make it politically\ndifficult or impossible for Iranian Govt either under present\nor new leadership to assume conciliatory attitude.\n6. We believe that coordination of our respective approaches\nto Iranian problem is essential, and attach great importance\nto the policy of prior consultation between our two govts.\nDesirable that the two embassies in Tehran work in closest\ncollaboration on all phases of matter. Need not (rpt not)\nemphasize that we fully appreciate Britain's particular\nconcern in oil problem. Retention of Iran in the free world\nis our common objective. Know British will realize that\nit is precisely in these interest that we believe it best\nto pursue the course outlined.\nEmbassy concurs.\nHOLMES\nJRM : EW\nNOTE: Mr. Ferguson (NEA) notified 8/28/51 5:07 p.m. MG\n200\n838\nTOP SEORST"
}