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- 4 - would not accept the mission if Schacht was to be in Iran at any time while he was advising the Iranian Oovernment. In fact he had put a clause into his agreement which provided that Mossadeq would not employ any other foreign economic adviser, either in that capacity or as an oil consultant while he, Gutt, was carrying out his mission. Mr. Nitze said that we were concerned with the time element. We felt that affairs in Iran were approaching a crisis and that it might be important to move promptly. Mr. Gutt said that he fully agreed. He did not believe, however, that he could be in Iran prior to November 2, and he thought it would take two or three weeks after his arrival before he could report on the Bank of Issue and taxation problems and he hoped that he would have developed sufficient confidence for Mossadeq to ask him to address himself to the oil question. Mr. Gutt said that he thought it would be all right if we told the British that we had seen him and hoped that we would not discuss the conversation in detail. He said that when he arrived in Iran he would communi- eate any ideas that he had either through the UN man in Iran or through Loy Henderson. He appreciated that Loy's channels of communication would be preferable if he wished to get any confidential message back to us in a hurry. Copies to: Mr. Bruce Mr. Byroade Mr. Linder s/s File P.Nitze:be SECRET,

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    "ocrText": "- 4 -\nwould not accept the mission if Schacht was to be in Iran\nat any time while he was advising the Iranian Oovernment.\nIn fact he had put a clause into his agreement which\nprovided that Mossadeq would not employ any other foreign\neconomic adviser, either in that capacity or as an oil\nconsultant while he, Gutt, was carrying out his mission.\nMr. Nitze said that we were concerned with the time\nelement. We felt that affairs in Iran were approaching\na crisis and that it might be important to move promptly.\nMr. Gutt said that he fully agreed. He did not believe,\nhowever, that he could be in Iran prior to November 2,\nand he thought it would take two or three weeks after his\narrival before he could report on the Bank of Issue and\ntaxation problems and he hoped that he would have developed\nsufficient confidence for Mossadeq to ask him to address\nhimself to the oil question.\nMr. Gutt said that he thought it would be all right\nif we told the British that we had seen him and hoped that\nwe would not discuss the conversation in detail.\nHe said that when he arrived in Iran he would communi-\neate any ideas that he had either through the UN man in\nIran or through Loy Henderson. He appreciated that Loy's\nchannels of communication would be preferable if he wished\nto get any confidential message back to us in a hurry.\nCopies to: Mr. Bruce\nMr. Byroade\nMr. Linder\ns/s File\nP.Nitze:be\nSECRET,"
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