Memorandum, State Department Summary of Telegrams

NLTCHaval Aide) 95 OFFICE OF THE SECRETARY OF STATE the WASHINGTON State Dept. Guidelines, March 6, 1982 E.O. DCB NLT, Date 9-4-85 April 24, 1951 By FOPSECREI SUMMARY OF TELEGRAMS IRAN We have informed Embassy London that we are disappointed in our talks with the British in Washington about Iran. The British confined them almost exclusively to the Anglo-Iranian Oil Company (AIOC) problem and they put forth no positive approach to any other political and domestic aspects of the Iranian crisis. We pressed upon them our view that the Shah is the best hope for stability in Iran and that he and Ala must be given full support, and we outlined our present planning for increased aid to Iran. We have instructed Embassy London to urge the Foreign Office to take a more positive attitude and we hope that the British in Iran will do everything possible to convince the Shah and Ala of their support. (In our Washington talks the British have denied reports that they were attempting to undermine Ala in order to install the pro-British Seyid Zia.) We are also discussing the whole matter with the British Ambassador here and we feel it very important for the US and the UK to coordinate fully their actions in Iran. Meanwhile, Ambassador Grady reports from Tehran that there is no constructive thinking there, either in or out of the Government, with regard to the manner of implementing the nationalization program. But the agitation continues and seems to be directed toward confiscation of the oil companies' properties, and even the moderates are moving toward a relatively extreme position. Grady has taken a number of occasions to emphasize to the Iranians the danger of their losing a great market by doing away with the instrumentality (AIOC) of effectively exploiting it. He has pointed out, without being contradicted, that the Iranians cannot possibly replace the technical production facilities, the organization facilities, and the marketing facilities which the AIOC possesses. Grady feels, however, that the Company or the British Government must take more initiative in making proposals for a settlement. TOP SECRET