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NLTI Naval Aide) 348 DECLARATION OFFICE OF E.O. 12065, Sec. 3-402 THESSECRETARY OF STATE May Guidelines, March WASHINGTON State By Dept. DEt NLT, Date 9-9-85 April 7, 1952 TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS IRAN Busheri, Minister of Roads and press "spokesman" for the present government in Iran has called on Henderson con- cerning a new approach for IBRD negotiations towards solution of the Iranian Oil Crisis. He told our Ambassador that in his opinion it would be a mistake for the Bank to send another mission to Iran un- less there could be a private agreement in advance on certain prin- ciples, and he hoped that the Bank could change its approach to such an extent as to make possible an agreement which the Iranian public would accept. Henderson believes that Busheri is thinking of a settlement along the following lines: 1) the Bank would undertake to operate the oil industry for a term of 10 or 15 years, preferably 10, at the end of which time the AIOC would have no further claims against Iran; 2) Iran would be willing to sell oil to the AIOC for the Bank at heavy discounts with the understanding that, if the contract were loyally carried out, the AIOC would consider no reparations in order; 3) the Bank would be free to hire such technicians as it considered necessary but would be informed how Iran felt about the employing of large numbers of British; and, 4) on signing the contract with the Bank both Iran and the UK would consider the conflict over oil settled, the UK would drop its proceedings before the International Court, and there would be no longer any question of the principle for which the Bank operated in Iran. Busheri asked Henderson if he would ascertain whefter the Bank would consider an arrangement of this kind. During this talk Henderson gained the impression that Busheri thought he might be selected as the next Prime Minister by the Shah and was trying to find in advance an approach to the oil dis- - pute which might be acceptable to the UK, the Bank, and Iran. This impression was confirmed during a later conversation with Minister of Court Ala. When asked whether Mosadeq would stay on after the New Majlis is convened Ala stated that the was not sure of the Prime TOP SECRET SECURITY INFORATION