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337 INCOMING TELEGRAM Department of State NLT (PSF-SUBJ.) 348 TELEGRAPH BRANCH copy / OF 2 14-15-X TOP SECRET A Action Control: 13117 is NEA Rec'd: July 25, 1951 ED FROM: Tehran 11:54 a.m. Info SS TO: Secretary of State DECLASSIFIED G STATE DEPT. 2m2. 12-4-f4 EUR NO: 380, July 25, 4 p.m. Authority NLT- 84-16 E DCR By HC NLT Date 12.28.14 PRIORITY SENT DEPT 380, LONDON 73 (EYES ONLY AMBASSADOR) FROM HARRIMAN FOR THE PRESIDENT AND SECRETARY. NO DISTRIBUTION EXCEPT AS DIRECTED BY THE SECRETARY'S OFFICE. I am naturally concerned over two subjects. First, whether 2 British Government fully understands disastrous consequences of failure to accept in friendly manner gesture of Iranian Government contained in proposal for negotiations through government mission and whether British will not (rpt not) try to spar on conditions which I believe will get them nowhere and will destroy atmosphere essential to successful negotiations. British shld realize extent Iranian Government has retreated from previous rigid positions: (A) Non-insistence on prior acceptance of nine point nationalizatior law, (B) Readiness to negotiate manner in which first general nationalization law of March 20 is to be carried out; (c) Agreement to negotiate with British Government instead of oil company although insisting that such negotiation be on behalf of company (D) Readiness to negotiate for foreign-owned company to 01 operate within Iran as agent for National Oil Company ; (E) Recognition of Iran's dependence upon goodwill of foreign companies for shipping and foreign outlets, (F) Readiness to negotiate after clear and repeated statement the by me that government cannot (rpt not) expect greater income than other producing countries under comparable circumstances, 1 8.3. and and (G) Acceptance of principle that they must deal with AIOC in working out above arrangements in spite of widespread hatred and distrust of company. I earnestly hope you and Gifford will continue to use maximum influence to prevent British from trying to settle any substantive question before Minister's arrival Tehran or to discredit Iranian Government before people by demands 113 such as for returning management of oil operations to British before negotiation. Report coming to me from objective American newspaper TOP SECRET REPRODUCTION OF THIS MESSAGE IS PROHIBITED

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    "ocrText": "337\nINCOMING TELEGRAM\nDepartment of State\nNLT (PSF-SUBJ.) 348\nTELEGRAPH BRANCH\ncopy / OF 2\n14-15-X\nTOP SECRET\nA\nAction\nControl: 13117\nis\nNEA\nRec'd:\nJuly 25, 1951\nED\nFROM: Tehran\n11:54 a.m.\nInfo\nSS\nTO:\nSecretary of State\nDECLASSIFIED\nG\nSTATE DEPT. 2m2. 12-4-f4\nEUR\nNO: 380, July 25, 4 p.m.\nAuthority\nNLT- 84-16\nE\nDCR\nBy HC NLT Date 12.28.14\nPRIORITY\nSENT DEPT 380, LONDON 73 (EYES ONLY AMBASSADOR)\nFROM HARRIMAN FOR THE PRESIDENT AND SECRETARY.\nNO DISTRIBUTION EXCEPT AS DIRECTED BY THE SECRETARY'S OFFICE.\nI am naturally concerned over two subjects. First, whether\n2\nBritish Government fully understands disastrous consequences\nof failure to accept in friendly manner gesture of Iranian\nGovernment contained in proposal for negotiations through\ngovernment mission and whether British will not (rpt not)\ntry to spar on conditions which I believe will get them\nnowhere and will destroy atmosphere essential to successful\nnegotiations.\nBritish shld realize extent Iranian Government has retreated\nfrom previous rigid positions: (A) Non-insistence on prior\nacceptance of nine point nationalizatior law, (B) Readiness\nto negotiate manner in which first general nationalization\nlaw of March 20 is to be carried out; (c) Agreement to negotiate\nwith British Government instead of oil company although\ninsisting that such negotiation be on behalf of company\n(D) Readiness to negotiate for foreign-owned company to\n01\noperate within Iran as agent for National Oil Company ;\n(E) Recognition of Iran's dependence upon goodwill of\nforeign companies for shipping and foreign outlets, (F)\nReadiness to negotiate after clear and repeated statement\nthe\nby me that government cannot (rpt not) expect greater income\nthan other producing countries under comparable circumstances,\n1\n8.3.\nand\nand (G) Acceptance of principle that they must deal with\nAIOC in working out above arrangements in spite of widespread\nhatred and distrust of company.\nI earnestly hope you and Gifford will continue to use maximum\ninfluence to prevent British from trying to settle any\nsubstantive question before Minister's arrival Tehran or\nto discredit Iranian Government before people by demands\n113\nsuch as for returning management of oil operations to British\nbefore negotiation. Report coming to me from objective\nAmerican newspaper\nTOP SECRET\nREPRODUCTION OF THIS\nMESSAGE IS PROHIBITED"
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