Memorandum of Conversation with Secretary of State Dean Acheson and Foreign Secretary of Great Britain Anthony Eden

no Loda 3556 1125102 Reusion of last pasas SECURITY INFORMATION UNITED STATES DELEGATION 143 TO SEVENTH GEMERAL ASSEMBLY 380 The following general views on the Iranian situation wore expressed by Mr. Acheson to MP. Bden in a brief meeting held in New York on the ovening of November 20. We have passed through many crisos in the Iranian situa- tion with our British frienda, sach of which has seen the situation grow steadily worse but never to the point of collapae. We believe in the present period, although it may be rolatively calm in outward appearance, we are coon to face a new orisis which in all probability will be determinative. There is at the moment in Iran a fealing of some hote and expectation that somehow or other the United States will produce sonething new to assist in the solution of the Iranian oil problem. If this hope is frustrated by no progress, it is our view that within a vory short period Iran will also turn against the United States-wand probably with the sare end result of a complete broak in relations. Should this happen, for all practical purposes Iran's ties with the West would be broken. It doss not follow automatically that the Tuden Party or its stooges would come immediatoly into power. It probably would mean, however, that the point of no roturn had bean passed in the Iranian situation and that there vould romain nothing that the US and UK, in concert or individually, could do to save the situation. There is overy chance, in the present atate of high emotion in Iran, that we may expect quite unpredictable and irrational noves on thoir part. We know that preparation is DECLASSIFIED or (E) E. 11652, Sec. 3(E) and 5(D) O. of State letter, SECURITY INFORMATION By Dept. NLT- HC NARS Date 11-30:76