Memorandum, State Department Summary of Telegrams

OFFICE OF THE SECRETARY OF STATE the WASHINGTON DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guidelines, March 6, 1982 August 31, 1951 By, DEB NLT, Date 9-5-85 SECTRET SUMMARY OF TELEGRAMS IRAN Ambassador Grady called on the Shah Wednesday at the latter's request and on Mosadeq yesterday on his own initiative. The Shah expressed his deep disappointment and concern at the failure of the oil negotiations, but said he did not see that he could intervene with Mosadeq at this moment, although hehoped that developments would eliminate Mosadeq and make possible the selection of a rational Prime Minister. He expressed his ignorance of Mosadeg's real intentions. In his talk with Mosadeq Ambassador Grady asked him what his plans were with regard to the oil problem, and whether he and his group were planning to make any more formal and comprehensive reply to the Stokes proposals. Mosadeq replied that he had hoped Grady was coming to him with further proposals from the British. Mosadeq stated that if he had to wait several years he would make no further reply to the British Govern- ment, nor would he make any concessions that would be in conflict with the March 20 nationalization law or the April 30 nine-point implementation law. Mosadeq reiterated that he would not consider any proposal to give the British any profits out of the operation of the oil industry or the marketing of the oil products. Grady comments that Mosadeq is back to precisely the same stand he took on their first discussion of the oil question. Mosadeq indicated during yesterday's conversation that he expected assistance from the US and begged Grady for "good news"1. Grady told him that "good news" could come only from Mosadeq and his associates and that the solution for Iran's financial and economic problems lay in his hands. NORTH AFRICA An officer of Embassy Paris has called upon M. Puaux, head of the Protectorate Section of the Foreign Office, and expressed interest in the news that M. Schuman would take up the subject of French Morocco with the Secretary during their September talks. Puaux said it was hoped this would result in a better understanding of the French position and future intentions in Morocco and that a memorandum was now being prepared to explain French policies there. SECREI