Message from President Harry S. Truman to Secretary of State Dean Acheson, with Related Memorandum

Security Information SIGNAL CENTER ABOARD PRESIDENTIAL COMMUNICATIONS CAR 1 OCTOBER 1952 FROM : SECRETARY OF STATE DEAN ACHESON, WASHINGTON, DC TO : THE PRESIDENT OF THE UNITED STATES, ABD PRESIDENTIAL SPECIAL NBR : CHARLIE 016 DTG : 011434Z DICLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (F) PART THREE 4-4-36 D.p.. of State letter, ROJECT NLT 78.5 By NLT- HL , NARS Date 5-4-78 CRUMAN TO HIS EXCELLENCY DR. MOHAMMAD MOSADEQ ARCHIVES thus SERVICE AND N PRIME MINISTER OF IRAN FROM SECRETARY ACHESON 66 TEXT I HAVE BEEN IN TOUCH WITH THE PRESIDENT SINCE HE RECEIVED YOUR MESSAGE OF SEPTEMBER 24, ON 1952, AND, SINCE HE IS AWAY FROM THE CAPTTAL AT THIS TIME, HE HAS AUTHORIZED ME TO ACKNOWLEDGE YOUR LETTER. HE IS DISSAPOINTTED TO LEARN FROM YOU THAT YOU HAVE FOUND UNACCEPTABLE THE PROPOSAL, PUT FORWARD ON AUGUST 30,1952. IT HAD BEEN OUR UNDERSTANDING THAT THE IRANIAN GOVERNMENTS POSITION WAS THAT NEGOTIATION FOR SETTLEMENT OF THE OIL DISPUTE MUST TAKE INTO ACCOUNT; (A) THE FACT OF NATIONALIZATION, (B) THE COMPLETE INDEPENDENCE OF IRAN IN THE OPERATION OF ITS OIL INDUSTRY, AND (c) THE FREEDOM OF IRAN TO SELL ITS OIL ON OTHER THAN A MONOPOLY BASIS. IT WAS AND IS OUR SINCERE BELIEF THAT THE PROPOSALS WHICH WERE PUT FORWARD ON AUGUST 30TH MET THESE POINTS. THESE PROPOSALS CLEARLY RECOGNIZED THE FACT OF NATIONALIZATION AND DID NOT SEEK TO REVIVE THE 1933 CONCESSION, OR ANY CONCESSION. NEITHER FOREIGN MANAGEMENT OF THE INDUSTRY NOR THE EMPLOYMENT OF TECHNICIANS WAS PUT FORWARD AS A CONDITION, OR EVEN SUGGESTED. THERE WAS NO INTENT TO PROPOSE A MONOPOLY OF THE PURCHASE OF IRANIAN OIL. OTHER QUESTIONS EXISTED AS WELL, INVOLVING THE CLAIM FOR COMPENSATION BY THE COMPANY AND THE COUNTER CLAIMS BY IRAN. WE SUGGESTED A METHOD OF SETTLEMENT OF ALL CLAIMS BY IMPARTIAL ADJUDICATION. THERE ARE DOUBTLESS OTHER EQUITABLE METHODS. IN REGARD TO THE QUESTION OF THE PRICE TO BE PAID FOR IRANIAN OIL, WE SUGGESTED THAT THIS SHOULD BE WORKED OUT BETWEEN PURCHASER AND SELLER RATHER THAN BY GOVERNMENTS. REGARDLESS OF THE ACCEPTABILITY OF THE PROPOSAL OF AUGUST 30TH, IT IS A MATTER OF REGRET TO US THAT THEIR MEANING SHOULD HABE BEEN MISUNDERSTOOD. WE HAVE TRIED TO CORRECT THIS BECAUSE OF THE IMPORTANCE WHICH ATTACHES TO OUR WORDS BEING UNDERSTOOD BY YOU AS THEY WERE MEANT BY US. Paraphrase Not Required, Consult Cryptocenter Befors /SIGNED ACHESON/ Declassifying.