Telegram from Ambassador Henry Grady to Secretary of State Dean Acheson, Number 663

NLT (PSF -SUBJ.)310 INCOMING TELEGRAM Department of State copy / OF2 575 TELEGRAPH BRANCH 18 B X TOP OLCRET A Action Control: 8555 Rec'd: August 16, 1951 NEA FROM: Tehran 1:34 p.m. Info SS TO: Secretary of State G DECLASSIFIED EUR NO: 663, 9 August 16, 1 pomo bm EMB E.O. 12065, Sec. 3-402 E DOFED State Dept. Guideline, June 12, 1979 DCR PR NUT f1.22 PRIORITY By NLT- He NARS, Date 4-5-d2 SENT DEPT 663; RPTD LONDON 145 (EYES ONLY AMBASSADOR) FROM HARRIMAN FOR THE PRESIDENT AND SECRETARY. NO DISTRIBUTION EXCEPT AS DIRECTED BY SECRETARY'S OFFICE. In meeting with Mosadeq Tuesday afternoon referred to in MYTEL Aug 14, stokes took firm line with PRIMIN to effect Iranian negotiating committee must begin substantive dis- cussions upon possible solution to problem which they thus far had not done, and said his mission could serve no useful purpose in Tehran if such negotiations were not undertaken. Arrangements were then made with Mosadeq for meeting between British and Iranian committee Wednesday morning for Iranians to hear British explanations of suggestions which they had made Mosadeq did not (rpt not) mention three points re- ported MYTEL Aug 13 as being his reaction trary statement in that telegram neither nor have informed Stokes of these points. Stokes feels that manner in which he took initiative in talk precluded detailed discussion. Mosadeq did tell Stokes, however, that he did not consider British proposal to be consistent with national- ization law of March 20 to which Stokes reports he replied that he did not see how Mosadeq could come to this conclusion since he had had no explanation of proposals. Meeting with Iranian committee Wednesday morning I am that British explained in considerable detail their proposal. Iranians listened to these explanations and asked questions, but did not discuss any points, saying that they had to con- sult among themselves and with Cabinet before taking any position. It was agreed that they wld consider matter and meet again to inform British of their reaction. It was also agreed that British proposal as such would not be released to the press by either side since its rather legalistic form would lead to misinterpretations, but that both sides would be free to explain proposals in their own language. While this meeting was in progress, Fatimi held press con- ference in which his comments were based upon assumption that Mosadeq FOP DECRE? REPRODUCTION OF THIS MESSAGE IS PROHIBITED