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T2X BMCRET -2- #458, July 31, Midnight, from Tehran. "HMG recognizes on their own behalf, and on that of the company, the principle of the hationalizatior of the oil industry in Persia. 99 Iranian reply follows: "The Iranian Govt is pleased that, in accordance with the formula submitted by Mr. Harriman, the British Govt has recognized on its own behalf and on that of the former company the principle of nationalization of the oil industry in Iran, and is sending mission to Iran to negotiate. The Iranian Govt recognizes the essentiality, in the interest of the success of the negotiations, of both govts creating the best possible atmosphere, and will enter into the negotiations in the same spirit of good will expressed by the British Govt. 99 You will note that Iranians prefer to use "formula" to "proposals" and *invitation" and also asked that the British indicate that they are ready to negotiate in accordance with formula. It seems to me that this is reasonable and is in fact what the British expect to do. Iranians put great emphasis on change of word "tension to "atmosphere" and I have found them adamant on this point as result of their lengthy Cabinet discussions of matter during last few days. I have not (rpt not) been able to move them from this position. They considered as being harsh and unfriendly and prefer substitution as indicated, This change appears unimportant. My principal argument has been for inclusion of the words "in the south" or the substitution of "in Iran* Here is where they made the strongest objection under some qualifying language denying full responsibility for situation was put in their reply. They frankly pointed out that British Govt's msg as changed above clearly indicates British Govt is talking about conditions in Iran and this implication they are prepared to accept. OMTA 2ND AH In Iranian reply the two previous objectionable points- reference to discussion of "the law and denial of existence of tension--have been extenuated and its cordial tone wld appear more than to compensate for the modifications in 0 British msg of 22 cues When I saw Shah he expressed earnest hope that British wld gugo accept the above exchange of msgs as he feels strongly that arrival of British Minister will have important psychological effect here gepofe HTTI BOL WA boxf I For my

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    "ocrText": "T2X BMCRET\n-2- #458, July 31, Midnight, from Tehran.\n\"HMG recognizes on their own behalf, and on that of the company,\nthe principle of the hationalizatior of the oil industry\nin Persia.\n99\nIranian reply follows:\n\"The Iranian Govt is pleased that, in accordance with the\nformula submitted by Mr. Harriman, the British Govt has\nrecognized on its own behalf and on that of the former\ncompany the principle of nationalization of the oil industry\nin Iran, and is sending mission to Iran to negotiate. The\nIranian Govt recognizes the essentiality, in the interest of\nthe success of the negotiations, of both govts creating\nthe best possible atmosphere, and will enter into the\nnegotiations in the same spirit of good will expressed by\nthe British Govt. 99\nYou will note that Iranians prefer to use \"formula\" to\n\"proposals\" and *invitation\" and also asked that the British\nindicate that they are ready to negotiate in accordance\nwith formula. It seems to me that this is reasonable and\nis in fact what the British expect to do. Iranians put\ngreat emphasis on change of word \"tension to \"atmosphere\"\nand I have found them adamant on this point as result of\ntheir lengthy Cabinet discussions of matter during last few\ndays. I have not (rpt not) been able to move them from\nthis position. They considered as being harsh\nand unfriendly and prefer substitution as indicated, This\nchange appears unimportant. My principal argument has been\nfor inclusion of the words \"in the south\" or the substitution\nof \"in Iran* Here is where they made the strongest\nobjection under some qualifying language denying full\nresponsibility for situation was put in their reply.\nThey\nfrankly pointed out that British Govt's msg as changed\nabove clearly indicates British Govt is talking about\nconditions in Iran and this implication they are prepared\nto accept.\nOMTA\n2ND AH\nIn Iranian reply the two previous objectionable points-\nreference to discussion of \"the law and denial of existence\nof tension--have been extenuated and its cordial tone wld\nappear more than to compensate for the modifications in\n0\nBritish msg\nof\n22\ncues\nWhen I saw Shah he expressed earnest hope that British wld\ngugo\naccept the above exchange of msgs as he feels strongly that\narrival of British Minister will have important psychological\neffect here\ngepofe\nHTTI\nBOL WA boxf I\nFor my"
}