Memorandum, State Department Summary of Telegrams

NCT/NAVALAIDE) 448 DECLASSIFIED OFFICE OF E.O. 12065, Sec. 3-402 THE SECRETARY OF STATE State Dept. Guidelines, March 6, 1982 WASHINGTON By DEB NLT, Date 9-11-85 December 22,1952 TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS IRAN During a conversation with Ambassador Dunn in Paris, British Foreign Secretary Eden referred to the reports that the Export-Import Bank might take some action today on a $25 million loan to Iran. He strongly urged that any action on this loan be postponed at least for the present. He said that although this loan, as he understands it, would not make any liquid funds available to Iran, it would be impossible to explain that to the British public. The general impression, he said, would be that this loan would make Mosadeq's position more rigid and enable him to hold out in any negotiations undertaken as a result of the recent Anglo-American conversations. Ambassador Gifford has independently stated that he doubts if this loan, which initially will have "no early benefit to the Iranian economy", will improve the psychological atmosphere in Iran sufficiently for Mosadeq to adopt a reasonable approach to an oil settlement. In view of these opinions, the decision has been made to cancel today's meeting of the Bank and defer consideration of the loan. Ambassador Henderson will carry through the effort to persuade Mosadeq to accept the principle of arbitration as contemplated in the Paris discussions with Eden. However, we have made clear to the British that it may be necessary to move quickly following Henderson's approach and we wish to be kept informed on any further British views regarding a lump sum settlement. GERMANY During a conversation with Socialist opposition chairman Ollenhauer, Acting High Commissioner Reber strongly emphasized the growing anxiety in US and NATO circles over the lagging European initiative on ratifying the EDC and contractual agreements. Reber made it quite clear that the US was firmly convinced that the EDC was the most workable and feasible solution to an effective European defense and that any other plans would only mean an interminable and even dangerous delay. TOP SECREI SECURITI INF ORMATIO