Memorandum, State Department Summary of Telegrams

NLT(Naval Aide)333 DECLASSIFIED OFFICE OF E.O. 12065, Sec. 3-402 THE SECRETARY OF STATE y State Dépt. Guidelines, March 6, 1982 WASHINGTON By DEB NTT, Date 9-9-80 February 29, 1952 TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS IRAN Embassy London reports that Mr. Garner of the International Bank had a long discussion with UK officials Wednesday night, covering all aspects of the Bank proposal for the operation of the Iranian oil industry, without any definite results. The British believed the UK could not sign any document permitting Bank operation "for the account" of Iran, nor could they agree to a document discriminating against British technicians. They thought the UK might be agreeable to the return of the technicians in gradual stages. There was no detailed discussion regarding price. Garner maintained his consistent position regarding technicians and expressed the opinion that the Iranian insistence that the Bank operate as their agent was not a question of major importance and could be worked out. He urged that the time was right for a British gesture and said tension would be relieved if the Iranians could be convinced, the UK would not seek to re- introduce the AIOC in a disguised form. Garner obtained the general im- pression that British Government officials have relatively open minds on most of the issues involved, while the AIOC officials are still rigid. Garner had an appointment with Eden last night which he hoped might produce something specific. As matters stand at the moment the Bank has no positive results to show the Iranians as a result of discussions in London, and Garner believes there is no hope for a settlement if a Bank representative returns to Iran next week and only repeats the earlier proposal. Meanwhile we have learned from Tehran that the Iranians clearly hope to get a better deal if they can get the British to concede first and bar- - gain from there. The Iranian negotiators are doing some missionary work on members of the oil and parliamentary committees, but do not wish to discuss the aide memoire which was drawn up prior to Garner's departure but not initialed. EGYPT Embassy Cairo has informed us that the British Ambassador has discussed with the British generals in Egypt the situation of the Canal Zone base. The generals agreed that in the past it had been assumed that the base would be successfully operated only with the cooperation of the Egyptian authorities and in the presence of a friendly Egyptian population. TOP SECRET SECURITY IFORMATION