Memorandum, State Department Summary of Telegrams

NCTCHOVAL Aide) 292 OFFICE OF THE SECRETARY OF STATE the DECLASSIFIED WASHINGTON State Dept. Guidelines, March 6, 1982 E.O. 12065, Sec. 3-402 December 7, 1951 By, DEB NLT, Daterop 9-6-85 SECRET SECURITY INF ORMATION SUMMARY OF TELEGRAMS IRAN We have instructed Ambassador Henderson to take up with Mosadeq or, if Mosadeq's attitude is not coopera - tive, directly with the Shah the matter of our military aid agreement with Iran, which Mosadeq has recently indicated he was not in favor of con- tinuing. We feel that this is a matter which is divorced from the oil con- troversy and upon which the Shah could and should take a firm standagainst Mosadeq if the latter maintains his intransigency. Henderson is authorized to point out to the Shah that in addition to leading his country toward bank- ruptcy and collapse Mosadeq is playing a dangerous game with Iranian security in order to win temporary political advantage. We believe that this argument might strengthen the Shah's resolve and induce him either to effect a change of attitude on the part of the present government or to replace it with a new one on the grounds that Mosadeg's policies, totally aside from the oil question, are a threat to Iranian security. Henderson is also to point out at his discretion that unless Section 511 assurances are received by January 8th, all US aid will cease and cannot be resumed until assur- ances are received. EGYPT Ambassador Caffery reports that demonstrations in Cairo and Alexandria grew to significant proportions on Wednesday and for the first time were almost entirely anti-Egyptian Government rather than anti-British. The Egyptian Government was ac- cused of preventing the Egyptian people from implementing the abrogation of the Anglo-Egyptian treaties. Caffery says that Interior Minister Serageddin is not yet beaten, but in closing the universities and schools and ordering the police to use force in stopping demonstrations and appealing to the pub- lic for support against the "enemies of order and security" he was moving in the direction of last resort measures. British Ambassador Stevenson has told Caffery of a meeting with Serageddin on Wednesday evening at which Serageddin pointed out that the Communists are making great headway. Serageddin remarked that although he had been able to assure Stevenson two months earlier that there was no danger of Communism in Egypt, he felt that today that danger was very grave. TOP SECRET SECURITY INFORMATION