Memorandum, State Department Summary of Telegrams

NLT(Naval Aide)397 the OFFICE OF THE SECRETARY OF STATE a 1982 WASHINGTON State Dept. Derz E.O. cuidelines, NLT, Date 6, September 8, 1952 BY. TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS IRAN Ambassador Henderson on Saturday called on Prime Minister Mosadeq at the latter's request. Mosadeq said he wished to discuss an announcement to be issued for the purpose of making clear why the Iranian Government could not accept the proposals contained in the joint US-UK message (This announcement was issued yesterday). The Prime Minister did not show Henderson the announcement, but he dwelt at length on various points in the JS-UK proposals to which his Government took exception. After stating his criticisms of the proposals and his suspicions of the motives behind certain points, Mosadeq said he would tell Henderson the kind of agreement he would accept, and he eventually dictated a statement to Henderson*: Iranian assistant. Mosadeq's statement contained the following points: 1) the company may bring its claims before an Iranian court, in which case (as he stated later) no limitation would be placed on the kind of claims it could present; 2) if the company wants Iran to go before the Inter- - national Court, Iran would be willing to do so provided it is precisely determined in advance what claims each party has which should be de- - cided by the Court, and in this case the company may only claim com- - pensation for installations in Iran and oil and oil products which the company had in storage there; and 3) a listing by category of Iranian claims. The Prime Minister said he thought that before Iran would consent to submit the types of claims agreed upon to the International Court, the AIOC must pay it in advance against counterclaims 50 million pounds, which Iran must have at once in order to keep going. This sum could later be used to adjust the amount of British and Iranian claims as finally determined by the Court. Hendersons preliminary impression from this conversation is that Mosadeq is anxious to have a formula agreeable to the British and Iranian Governments to present to the Majlis and Senate when they meet. Provided that such a formula gives him ready funds in the amount of 50 million pounds and limits the British claims to former AIOC physical properties in Iran, Mosadeq might be willing to drop certain categories of Iranian counterclaims, but Henderson is not sure of this. TOP SECRET SECURITY INFORMATION