Telegram from Ambassador Henry Grady to Secretary of State Dean Acheson, Number 382

INCOMING TELEGRAM Department of State COPY 10F2 TELEGRAPH BRANCH 646 D-X TOP SECRET A Action Control: 13503 NEA Rec'd: July 25, 1951 FROM: Tehran 9:16 p.m. Info SS TO: Secretary of State G EUR NO: 382, July 25, 10 p.m. E GEVDA DCR PRIORITY. cura DIG SENT DEPT PRIORITY 382, LONDON 74 (EYES ONLY FOR AMBASSADOR). . bxobossy FROM HARRIMAN FOR THE PRESIDENT AND SECRETARY NO (RPT NO) DISTRIBUTION EXCEPT AS DIRECTED BY SECRETARY's as OFFICE. TO Brit Amb gave me Tuesday afternoon fol msg he had received from FONOFF, dispatched prior to receipt of Iranian proposal submitted thru me : QUOTE. spobberg Public opinion in UK wld not (rpt not) tolerate visit of Min to Tehran in present cireumstances unless there were solid grounds for believing Persians were acting in good faith and there are reasonable prospects of reaching settlement We have no (rpt no) desire make unnecessary conditions, but we consider fol to be essential prerequisites before such mission shld be dispatched: (A) Company must be allowed resume operations under its own management and interference with its staff must cease; (B) there must be no (rpt no) attempt be devices such as new forms of tanker receipts to pre judice legal position of company while discussions continue; (c) must be understood mission wld negotiate with Persian Govt and not (rpt not members of oil commission; (D) Persian Govt shld signify in advance their willingness to discuss oil question with mission without insisting on prior acceptance of terms of hationalization law (nine point law), if these conditions fulfilled we wld of course be prepared to agree that discussions shld be on basis of an acceptance of principle of nationalization. UNQUOTE. Brit Amb said points (c) and (D) were covered by proposal and (B) was not (rpt not) at present involved, which left point (A) at issue. I told him I cld not (rpt not) discuss point (A) with Iran Govt as I considered it subject for discussion after DECLASSIFIED arrival of E.O. 13526 Authority LP.HST 2013.010, d4 TOP SECRET REPRODUCTION OF THIS NARA PMH Dato 1/15/2016 MESSAGE IS PROHIBITED