Telegram from Ambassador Henry Grady to Secretary of State Dean Acheson, Number 706
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OCR Page 1 of 5NLT (PSF-SUBJ) 303
copy / of 2
iNCOMING TELEGRAM
Department of State
625
TELEGRAPH BRANCH
22-D-X
mor
A
Action
Control:
9973
Rec'd:
August
19.
1951
N EA
FROM: Tehran
Info
TO:
Secretary of State
/ANATIONAL
SS
ARCHIVES
1
RECORDS
DECLASSIFIED
G
NO: 706, August 19, Noon
SERVICE**
E. O. 11652, Sec. 3(E) and 5,D)
EUR
D.p. of State 4-11-76
E
DCR
PRIORITY
Bay NLT HC
NARS Delle 9.21.78
PROJECT NLT 7A.2
FROM HARRIMAN TO PRESIDENT AND SECRETARY
o
NO DISTRIBUTION EXCEPT BY DIRECTION OF SECRETARY's OFFICE.
Fol reply of Persian del to proposals of Brit del was
handed last night by Iran negot comite to Brit del
or
(Without prejudice to the rights of two parties). e
DO
Persian del does not consider that proposals for future
operation of oil industry in south which Brit del acting
on behalf of former oil 00 submitted to Persian del,
conform to definition of nationalization of oil industry
stipulated in Persian law and which formed part of formula
put forward by Mr. Harriman and accepted by HMG and former
oil co.
According to formula nationalization of oil industry is
defined as meaning that ewl exploration, extraction and
exploitation operations are in hands of Persian Govt. But
principles jbdwqpegmsnrit del wld not only take out of
hands of Persian Govt substantial part of powers of
ment of oil industry, but wld also revive former AIOC in
new form.
oxBeu
Leaving out certain minor points, main headings proposed
by Brit del and arguments which are now put forward on
various subjs are as fols:
1. Purchasing organization:
cousnubetou
In these proposals, estab of a purchasing organ for export
of Persia's oil is envisaged. This organ wld enter into a
long term contract, say for 25 yrs, with Persian Nati Oil Co.
This organ wld buy Persian oil in very large quantities
in such a way as to approximate to a monopoly
one
31J
Altho provision is made in Art 3 of Brit del's memo for
Persian Natl Oil Co. to be able to engage in additional
transactions
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