Memorandum, State Department Summary of Telegrams

NLT (Naval Aide)340 OFFICE OF DECLASSIFIED THE SECRETARY OF STATE they E.O. 12065, Sec. 3-402 WASHINGTON Guidelines, March 6, 1982 State By Dept. DEB NLT, Date 9-9-8 March 20, 1952 TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS USSR Ambassador Dunn has had two conversations in Paris with Foreign Ministers Schuman and Eden on the subject of the recent Soviet note regarding Germany. Dunn set forth our belief that the reply should avoid any discussion of details and should be confined to the principal point that a first step must be the creation of conditions for free elections. He found that Schuman and Eden were firmly in- sistent on the necessity of including in the note some mention of 1) the status of an interim German Government, 2) the freedom which an all- German Government must have to join associations of states compatible with the UN, 3) frontiers, and 4) German national forces. Dunn states that he was particularly convinced by Schuman's strong plea on points 2, 3, and 4, and that it is clear to him that since these matters are of vital concern to the British and French national positions, we cannot hope to gain acceptance of our point of view. Schuman and Eden have agreed that the Soviet acceptance of the UN Commission must have first and absolute priority, and they are prepared to make the other points subsidiary. IRAN The Shah, in a conversation with our Counselor of Embassy at Tehran, expressed his regret at the failure of the Inter- - national Bank talks but stated that the Bank, in common with the rest of the world, seems to overlook the emotional and psychological aspects of the problem which, he admitted, were understandable only by Iranians. Although not completely disheartened in spite of the growing financial strain, he sees no prospect that the British would make the first move towards new negotiations, that the Bank would reenter the picture, or that Mosadeq would in the future approach the problem more realistically. The Shah expressed considerable gratification and personal satisfaction that the US had seen fit to continue its military mission beyond the expiration of its contract, and he sincerely hoped a new contract could be negotiated shortly. He reviewed Iran's need for military aid and in- sisted that Iranian military men knew the great value of the aid which Iran had received in spite of the Government's disparagement. TOP SECRET SECURITY INFORIATION