Memorandum, State Department Summary of Telegrams

NLT ( Naval Aide) 324 OFFICE OF DECLASSIFIED THE SECRETARY OF STATE State Dept. Guidelines, Sec. March 3-402 6, 1982 WASHINGTON P By, DEB NLT, Date 9-9-05 February 20, 1952 TOP SECRET SECURITY INF ORMATION SUMMARY OF TELEGRAMS IRAN Reporting on the course of discussions between the International Bank mission and Iranian officials on the oil question, Embassy Tehran says that some progress has been made in that the Iranians have shown a real desire to work toward a solution of the problem and they have not refused outright to agree to the price proposed by the Bank, although they do not feel satisfied with it. The question of employment of British technicians, however, is no nearer a settlement and the Iranians are re- luctant to commit themselves on specific details, sticking to broad generalities about the equity and justice of their position. The Embassy also reports a deepening concern among Iranian officials over the precarious financial situation of their country and their fear that negotiations with the International Bank mission will not be con- cluded in time to rescue them from bankruptcy. The Embassy has ex- pressed the hope that we will be in a position to come forward with a loan large enough to help Iran over the interim period. Our friends in Iran will be then in a much better position to combat the propaganda line sure to be taken that when Iran was in a desperate financial situation we gave no financial aid in spite of our protests of friendship, and compelled Iran to turn to British or other sources in order to survive. In a later report, the Embassy stated that the Iranian attitude on price is such as to leave little hope they would agree to a reasonable figure during Mr. Garner's stay in Tehran. A profound emotional current runs through Iranian thinking on this as on other aspects of the problem. Garner has not given the Iranians any indication he has any flexibility on this point but he has indicated to the Embassy that he believes something could be done and it is understood he will pursue with the British in London. Garner is flying to London today. No further progress has been made on the ques tion of the return of British technicians. Ambassador Henderson believes it might be possible to reintroduce some British technicians in gradual stages over a period of months. While Garner believes it might be possible for the Bank to operate on such a basis, he takes the view there is no assurance that this would be the case and the Bank would be assuming an TOP SEGRET SECURITY INF ORMATION