Memorandum, State Department Summary of Telegrams

WITCHAVAl Aid.1391 OFFICE OF DECLASSIFIED 3-402 THE SECRETARY OF STATE E.O. Guidelines, 4-10-85 12065, Sec. March 6, 1982 WASHINGTON State Dept. DEPR September 9, 1952 By TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS IRAN: London and Tehran Embassies have reported on the most recent conversations of the British Charge at Tehran with Mosadeq. In summary, Mosadeq said he could agree to arbitration by the International Court of Justice only if the claims of both parties were clearly enumerated and there were no references to the 1933 Agreement; also, that Iran could not agree to the AIOC putting forward claims for anything other than the value of physical property and stocks in Abadan at the time of nationalization. Mosadeq emphasized that Iran must have immediate financial aid and said he hoped 50 million pounds would be made available even if the British preferred to make it available as a grant or as an advance. He added that if there were a chance of agreement on these terms he would be willing to postpone the forthcoming meeting of the Majlis. If there were no possibility of British agreement to these conditions, Mosadeq would then leave the question for the decision of the Majlis and the Senate. He asked to see Chärge Middleton again on September 9, at which time he hoped he could receive a British decision. Middleton took the line that he saw no pros- pect of Her Majesty's Government agreeing to these terms and said he felt it was useless to pursue this line. Nevertheless, he would report the conversation to his Government. The preliminary reaction of the British Foreign Office is that the UK could not agree to any avoidance of reference to the 1933 Agreement; that the UK could not agree to restricting its claims to physical property and oil in storage; and that the AIOC could not make 50 million pounds available. The British Foreign Office has advised its Charge at Tehran that it will forward its comments on the Mosadeq proposals after it has had an opportunity to fully discuss the matter internally and with us but that this cannot be done prior to Middleton's next meeting with Mosadeq on September 9. The message adds that the Foreign Office endorses the line which Middleton took with Mosadeq and that there is no point under the circumstances of requesting Mosadeq to postpone the meeting of the Majlis. TOP SECRET SECURITY INEORMATION