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T SECTICIT "NATIONAL ARCHIVES AND RECORDA -3- Secretery Acheson then said he knew Dr. Mossedegh vould under- stend that we would not wish to be a party to artanging an agreement that would upset the whole world fabric of agreements in the oil in- dustry. As a nation ve had an interest in the stable production of petroleum, and na we were willing to understand Drl Mossadegh's problems, we trusted he would in a similar way understand ours. Dr. Mossadegh said that it was not at all the intention of the Iranian Government to upset the fabric of world oil agreements; that all he wanted was a just and reasonable settlenente Dr. Mossadegh then said that he vould like to make a statement in order to facilitate Secretary Acheson's understanding of the whole question. Ho then viewed his reluctent entry into politica, the National Front's formation of the government, the illegality of the 1933 agreement which was reached under duress, and the evils of the dictatorship of the late Resa Shah Pahlavi, including his own imprisonment. He then touched on his familier line considering the danger of the present situation in Iran, and wound up his statement with some emotion, assuring the Secretery that his only interest was to solve this question once and for all, end not to go home empty-handed. If ha vere obliged to do 80, the consequences for Iran would be disastrous, and therefore equally disastrous for the preserva- tion of pesce. The United States would then have to fight a ver in Iran like the war in Kores, equally without result. The Secretary said he understood Dr. Mossedegh'a feolings, and himself felt great sympathy for his position. He himself, said the Secretary jokingly, had had the aubition for his life to be intelligent, rich and obscure. But when the President had made hin Secretary of State, he had lost his chance to be rich; he couldn't be obseure; and E lot of people did not think he was intelligent. Dr. Mossedegh was highly amused, though he could not agree that many people did not think the Secretary was intelligent. The Secretary then said he understood the problem with which Dr. Mossadegh had to contend, end as he had stated previoualy, we were anxious for an equitable settlement which would enable Ixan to derive the maximum amount of revenue from her petroleum resources. The Secretary then soid that in regard to the refinery, it was his understanding thet the Iranien Government was willing for the refinery to be turned over to a non-British company which would then own and operate it, and would assume responsibility for the payment of compensa- tion to the former owners, the AIOC. Drl Mossadegh said this wes correct. The Secretary then said that there would likevise be claima for installations in the oil fields, end that there were also Iranian counter-dlains. These might perhaps cancel one snother out. DECLASSIFIED b. a 11632, Sec. 3(E) and S(D) or (E) Dept. of State letter. 5-17-36 Bry NLT- He NARS Date 63036 SECAET

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Page context
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    "ocrText": "T\nSECTICIT\n\"NATIONAL\nARCHIVES AND\nRECORDA\n-3-\nSecretery Acheson then said he knew Dr. Mossedegh vould under-\nstend that we would not wish to be a party to artanging an agreement\nthat would upset the whole world fabric of agreements in the oil in-\ndustry. As a nation ve had an interest in the stable production of\npetroleum, and na we were willing to understand Drl Mossadegh's problems,\nwe trusted he would in a similar way understand ours.\nDr. Mossadegh said that it was not at all the intention of\nthe Iranian Government to upset the fabric of world oil agreements;\nthat all he wanted was a just and reasonable settlenente Dr. Mossadegh\nthen said that he vould like to make a statement in order to facilitate\nSecretary Acheson's understanding of the whole question. Ho then\nviewed his reluctent entry into politica, the National Front's formation\nof the government, the illegality of the 1933 agreement which was reached\nunder duress, and the evils of the dictatorship of the late Resa Shah\nPahlavi, including his own imprisonment. He then touched on his familier\nline considering the danger of the present situation in Iran, and wound\nup his statement with some emotion, assuring the Secretery that his only\ninterest was to solve this question once and for all, end not to go home\nempty-handed. If ha vere obliged to do 80, the consequences for Iran\nwould be disastrous, and therefore equally disastrous for the preserva-\ntion of pesce. The United States would then have to fight a ver in Iran\nlike the war in Kores, equally without result.\nThe Secretary said he understood Dr. Mossedegh'a feolings, and\nhimself felt great sympathy for his position. He himself, said the\nSecretary jokingly, had had the aubition for his life to be intelligent,\nrich and obscure. But when the President had made hin Secretary of State,\nhe had lost his chance to be rich; he couldn't be obseure; and E lot of\npeople did not think he was intelligent.\nDr. Mossedegh was highly amused, though he could not agree\nthat many people did not think the Secretary was intelligent.\nThe Secretary then said he understood the problem with which\nDr. Mossadegh had to contend, end as he had stated previoualy, we were\nanxious for an equitable settlement which would enable Ixan to derive\nthe maximum amount of revenue from her petroleum resources.\nThe Secretary then soid that in regard to the refinery, it was his\nunderstanding thet the Iranien Government was willing for the refinery\nto be turned over to a non-British company which would then own and\noperate it, and would assume responsibility for the payment of compensa-\ntion to the former owners, the AIOC. Drl Mossadegh said this wes correct.\nThe Secretary then said that there would likevise be claima\nfor installations in the oil fields, end that there were also Iranian\ncounter-dlains. These might perhaps cancel one snother out.\nDECLASSIFIED\nb. a 11632, Sec. 3(E) and S(D) or (E)\nDept. of State letter. 5-17-36\nBry NLT- He NARS Date 63036\nSECAET"
}