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TOP SECRET yor #709, August 19, 7 p.mos from Tehran. Govt has not so far undertaken such negots as was a.greed in formula but rather has read into proposals certain conclusion re operations within Iran which were not contemplated by proposals and against which safeguards old be worked out thru discussion and negot. Iran Govt has now submitted reply which ignores my previous state- ments and is contrary well known commercial methods of internatl supply and distr of oil. US believes seizure by any govt of Ion owned properties without either paying prompt adeguate and eff compensation or working out new arrangements mutually satis to former owner and govt, is not nationalization, but confiscation Iran Govt has made it clear it does not intend to confiscate, and I believe arrangements possible on basis Brit proposals which will permit Iran to realize its aspirations. Underag such arrangement Iran wld control its oil industry within Iran and wid obtain very large income, as large as it's possible to receive, which has been est by Brit Min to be about 150 million pounds on basis 1950 operations. Income this magnitude wld make it possible for Iran promptly to carry out extensive development vast econ potential of country and thus improve health and welfare Iran people. US anxious assist in any way to these ends. Whole principle of US assistance however is to help other countries to help themselves ssist Collapse these negots will lead to further misery to Iran people and leave them no hope of getting their conditions which they so justly expect and deserve. Pres Truman asked me come Iran to help work out fair arrangement and I have earnestly tried with all frankness to give impartial advice thru which controversy cld be settled in fair and equitable manner and thru which Iran cld obtain max possible income. thru which be Publication of statement handed last night Brit del wld further confuse already much confused Iran public as to DOW facts interntl oil business and real intent of Brit proposals Earnestly hope publication this doc will be withheld and that it will be withdrawn oor amended in such way as to permit e negots on realistic basis. Its release wld compel me make 23 public statement along lines of what I have said" If I am compelled to make public statement it will of course be MEV more moderate in tone, leaving essentially intact substance remarks re commercial facts, conf 'iscation and hationalization, and Brit proposals D-X GRADY 3 opal DES:RW Note: Mr. Halla (GTI) was notified 6:20 poma 8/19/51 CWO/FED TOF SBORET TOP SECRET

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Page context
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    "ocrText": "TOP SECRET\nyor\n#709, August 19, 7 p.mos from Tehran.\nGovt has not so far undertaken such negots as was a.greed\nin formula but rather has read into proposals certain\nconclusion re operations within Iran which were not\ncontemplated by proposals and against which safeguards\nold be worked out thru discussion and negot. Iran Govt\nhas now submitted reply which ignores my previous state-\nments and is contrary well known commercial methods of\ninternatl supply and distr of oil.\nUS believes seizure by any govt of Ion owned properties\nwithout either paying prompt adeguate and eff compensation\nor working out new arrangements mutually satis to former\nowner and govt, is not nationalization, but confiscation\nIran Govt has made it clear it does not intend to confiscate,\nand I believe arrangements possible on basis Brit proposals\nwhich will permit Iran to realize its aspirations. Underag\nsuch arrangement Iran wld control its oil industry within\nIran and wid obtain very large income, as large as it's\npossible to receive, which has been est by Brit Min to be\nabout 150 million pounds on basis 1950 operations. Income\nthis magnitude wld make it possible for Iran promptly to\ncarry out extensive development vast econ potential of\ncountry and thus improve health and welfare Iran people.\nUS anxious assist in any way to these ends. Whole principle\nof US assistance however is to help other countries to help\nthemselves\nssist\nCollapse these negots will lead to further misery to Iran\npeople and leave them no hope of getting their conditions\nwhich they so justly expect and deserve. Pres Truman asked\nme come Iran to help work out fair arrangement and I have\nearnestly tried with all frankness to give impartial advice\nthru which controversy cld be settled in fair and equitable\nmanner and thru which Iran cld obtain max possible income.\nthru\nwhich\nbe\nPublication of statement handed last night Brit del wld\nfurther confuse already much confused Iran public as to\nDOW\nfacts interntl oil business and real intent of Brit proposals\nEarnestly hope publication this doc will be withheld and\nthat it will be withdrawn oor amended in such way as to permit\ne\nnegots on realistic basis. Its release wld compel me make\n23\npublic statement along lines of what I have said\"\nIf I am compelled to make public statement it will of course be\nMEV\nmore moderate in tone, leaving essentially intact substance\nremarks re commercial facts, conf 'iscation and hationalization,\nand Brit proposals\nD-X\nGRADY 3\nopal\nDES:RW\nNote: Mr. Halla (GTI) was notified 6:20 poma 8/19/51 CWO/FED\nTOF SBORET\nTOP SECRET"
}