Memorandum, State Department Summary of Telegrams

NLTCH:val Aide) 410 OFFICE OF DECLASSIFIED THE SECRETARY OF STATE E.O. 12065, Sec. 3-402 WASHINGTON State Dept. Guidelines, March 6, 1982 By DEB NLT, Date 9-10-85 October 16, 1952 TOP SECRET SECURITY INF ORMATION SUMMARY OF TELEGRAMS SOVIET A French official has told our Embassy in Paris that his Foreign UNION Office expects to advise the US and UK officially within a few days of Soviet Foreign Minister Vyshinsky's recent approach to the French Ambassador in Moscow for conversations on the subject of improving Franco-Soviet relations, claiming this would be a forerunner to a general easing of East-West tension. The French had considered advising the North Atlantic Council, but have decided to tell only the US and UK for the time being. The nature of the reply to Moscow has not yet been decided, but the French official says the present thinking is to inform the Soviets that France would be glad to hold conversations, but only in consultation with the UK and US and not independently. IRAN In further comment on our plan to settle the Iranian oil question, Ambassador Henderson states Iran wishes to have a market as large, or even larger, than it formerly enjoyed, but that for political as well as economic factors they would like to be free to sell reasonably large amounts of oil to customers in the Western world other than AIOC. However, he believes this point could be worked out during preliminary conversations. Regarding the form in which funds might be made avail- able to Iran, Ambassador Henderson does not believe it would be abso- lutely impossible for Mosadeq to accept cash in the form of an advance on future sales of oil. Nevertheless, it was Henderson's thought that perhaps some device could be worked out whereby in connection with the settlement of the compensation question, AIOC might be able to make a large advance, preferably about 50 million, and in return the amount of compensation due AIOC as a result of nationalization might be increased by say 15 million tons of oil. He had hoped a way could be found whereby the Export-Import Bank or some other American or inter- - national financial institution could lend AIOC funds necessary for such an advance. Our representative believes such a procedure would be easier for Mosadeq to accept, in view of the demands of nationalist ex- tremists, than the alternative method of AIOC offering Iran a loan against future oil deliveries. The clarification contained in our latest message to T 'ehran does encourage Henderson to believe the price formula suggested might be acceptable to Mosadeq. TOP SECRET SECURITY INFORMA TION