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-4 cmo 340, July 24, 11 a.m. (SECTION ONE OF TWO) from Tehran.
run on an efficient basis and this could only be accomplished
through foreign-owned operating company with freedom in day to
day management though acting under policy principles established
by government or National Oil Company
The question that appears to give Iranians greatest concern is
how they can prevent AIOC from returning under different guise
and operating politically in manner in which they maintain has
been the case in the past; also, manner in which arrangements
could be worked out and not (rpt not) give appearance of setting
aside nationalization law. I believe they recognize that they
cannot (rpt not) conduct operations but want access to all
information and supervision beyond board membership as was set
forth in Jacksons proposal. They also want training of Iranians
for increasingly import and administrative and technical
positions as they qualify.
I believe they now understand they are dependent upon AIOC for
shipping and marketing If British agree to negotiations I
believe it would be well for them to be prepared to include,
if company to operate within Iran, certain interests in addition
to AIOC, such as Shell or AIOC affiliates in other countries.
I am in no (rpt no) sense suggesting inclusion of any American
interests.
It is my impression that atmosphere exists in Tehran today in
which British can make satisfactory settlement and I doubt
whether as favorable situation will present itself again. With
all of the increasing difficulties and grave dangers involved in.
delay, I believe the sooner member of British Government with
appropriate advisers, including representative of AIOC, comes
to Tehran the better it will be. Although this proposal will
not (rpt not) be all that British would like I strongly recommend
that it be accepted if at all possible.
In phrasing the proposal Iranians obviously had in mind the
last paragraph of British Ambassador's aide memoire of May 24 to
Foreign Minister suggesting sending of government mission to
Tehran headed by member of government. I am informing British
Ambassador here early Tuesday morning. I recommend that you
discuss matter fully with Franks in Washington and instruct
Gifford to discuss it with British, urging them to accept.
Although it is better psycho logically for me not to leave here,
I am prepared to go to Londou un short notice if it is considered
advisable.
GRADY
MJF:AS
Note: Read by Mr. Ferguson 1:45 p.m. 7/24/51 KW.
Advance copy to SS 7/24/51 3:30 p.m. KW.
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Context sent to Scholar
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"ocrText": "-4 cmo 340, July 24, 11 a.m. (SECTION ONE OF TWO) from Tehran.\nrun on an efficient basis and this could only be accomplished\nthrough foreign-owned operating company with freedom in day to\nday management though acting under policy principles established\nby government or National Oil Company\nThe question that appears to give Iranians greatest concern is\nhow they can prevent AIOC from returning under different guise\nand operating politically in manner in which they maintain has\nbeen the case in the past; also, manner in which arrangements\ncould be worked out and not (rpt not) give appearance of setting\naside nationalization law. I believe they recognize that they\ncannot (rpt not) conduct operations but want access to all\ninformation and supervision beyond board membership as was set\nforth in Jacksons proposal. They also want training of Iranians\nfor increasingly import and administrative and technical\npositions as they qualify.\nI believe they now understand they are dependent upon AIOC for\nshipping and marketing If British agree to negotiations I\nbelieve it would be well for them to be prepared to include,\nif company to operate within Iran, certain interests in addition\nto AIOC, such as Shell or AIOC affiliates in other countries.\nI am in no (rpt no) sense suggesting inclusion of any American\ninterests.\nIt is my impression that atmosphere exists in Tehran today in\nwhich British can make satisfactory settlement and I doubt\nwhether as favorable situation will present itself again. With\nall of the increasing difficulties and grave dangers involved in.\ndelay, I believe the sooner member of British Government with\nappropriate advisers, including representative of AIOC, comes\nto Tehran the better it will be. Although this proposal will\nnot (rpt not) be all that British would like I strongly recommend\nthat it be accepted if at all possible.\nIn phrasing the proposal Iranians obviously had in mind the\nlast paragraph of British Ambassador's aide memoire of May 24 to\nForeign Minister suggesting sending of government mission to\nTehran headed by member of government. I am informing British\nAmbassador here early Tuesday morning. I recommend that you\ndiscuss matter fully with Franks in Washington and instruct\nGifford to discuss it with British, urging them to accept.\nAlthough it is better psycho logically for me not to leave here,\nI am prepared to go to Londou un short notice if it is considered\nadvisable.\nGRADY\nMJF:AS\nNote: Read by Mr. Ferguson 1:45 p.m. 7/24/51 KW.\nAdvance copy to SS 7/24/51 3:30 p.m. KW.\nTOP SEORET"
}