Memorandum, State Department Summary of Telegrams

NLT (Naval Aide / 250 THE SECRETARY OF STATE WASHINGTON DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guidelines, March 6, 1982 September 25, 1951 By DEB NLT, Date 9-5-85 TOP SECRE' SUMMARY OF TELEGRAMS IRAN The British Ambassador in Tehran has delivered Britain's negative reply to the latest Iranian proposals on the oil negotiations. At the same time he urgently requested an audience with the Shah to explain that the door to negotiations is still open if the Iranians will show any evidence of a willingness to negotiate on the basis of sound economic considerations and are willing to send plenipotentiaries to London. Thus far the Shah has not arranged to see the British Ambassador. Our Embassy in Tehran points out that Deputy Prime Minister Fatemi stated to the press on September 23rd that Mosadeq had sent no note to the British, although the Iranian Government had attempted to create an atmosphere of good mutual understanding " 'through indirect means". (It will be recalled that the "note" to the British, delivered by the Minister of Court Ala, was neither signed nor dated nor typed on letterhead paper. ) Qavam (often mentioned as a possible successor to Mosadeq) telephoned the Tehran Associated Press correspondent Sunday evening and said he feared that Mosadeq is preparing to declare a republic and depose the Shah. Our Embassy comments that Mosadeq denied any such intentions before the Majlis on September 9th, but these rumors persist. The departure of Princess Ashraf and the expected departure of Queen Soraya seems to give imperial approval to the exodus of a large number of wealthy families to whom passports have been issued during the past month. In London the Foreign Office is increasingly concerned over the situation of British personnel in Abadan in view of the latest Iranian moves to seize transport. If the Iranians requisition British houses, food and other supplies, the Foreign Office fears that the position of British personnel may become untenable even though their residence permits are not withdrawn. The British have reports from Iranian sources that Mosadeq is at present try - ing to string out the crisis until after the British elections, believing that the new British Government, whether Labor or Conservative, would be anxious to settle the oil matter quickly and more nearly on Mosadeq's terms. TURKEY Ambassador Wadsworth was received by President Bayar and Foreign Minister Koprulu yesterday afternoon and he TOP SECREI