Memoranda from Secretary of State Dean Acheson to President Harry S. Truman, with Attachments

SECRET DEPARTMENT OF STATE WASHINGTON June 7, 1951 MEMORANDUM FOR THE PRESIDENT Subject: Reply by Prime Minister Attlee to Your Message on Iran There is enclosed a copy of the reply by Prime Minister Attlee to your message of May 31 on the Iranian situation. This communi- cation was delivered to Ambassador Gifford in London for transmittal to you. on June 5, 1951. Mr. Attlee maintains that the Iranians appear to be determined to proceed with unilateral action, and states that the British Government "cannot admit" a solution involving a breach of contract, which could jeopardize other contracts throughout the world and allow Iran, with her oil revenues cut off, to drift into economic chaos. He points out that this could benefit only the Communists. The message does, however, set forth the willingness of the British to send an Anglo-Iranian Oil Company mission to Tehran and to "be prepared to consider any further steps which might seem necessary to promote a just and reasonable solution" REGORBS SERVICE" AND I believe that, by and large, Mr. Attlee's message is to satisfactory and that the purpose of your message to him has been accomplished in that the British negotiators are now leaving for Tehran and the British Government appears willing to approach the Iranians in a spirit of moderation. I do not believe that any reply is necessary at th; time. The Department is conveying to the British Government through Ambassador Gifford its appreciation for the steps the British Government is now taking. In addition to transmitting the attached message, Mr. Attlee has requested Ambassador Gifford to convey to you his thanks for sending him the text of your similar message to Prime Minister Mosadeq of Iran. from Enclosure: E.O. 3-402 Copy of Prime Minister Attlee's State Dept. 1979 reply to your message NLT SECRET STORDT