Memorandum, State Department Summary of Telegrams

NLTLMADALAIDE) 318 18 OFFICE OF E.O. 92063 soc March 3-402 6, 1932 DECLASSITIDD THE SECRETARY OF STATE WASHINGTON State DED Dept. Guidelines, NLT, January 23, 1952 BY TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS EGYPT Ambassador Caffery reports that the investigation conducted by our representatives into the shooting of the American nun, Sister Anthony, reveals that the origin of the shot can not be definitely determined at this time. Egyptian terrorists had been in the compound of the convent many times during the afternoon and were believed to be there at the time of the shooting. British tanks had passed the compound shortly before or at the time of the shooting and considerable gun fire was exchanged in the immediate vicinity. No bullet was found in or near the body and no eye-witness was located. The statements of the British and Egyptian doctors were diametrically opposed. The Ambassador comments that the fact remains that had no terrorists invaded the convent grounds Sister Anthony would not have been killed. Unless directed other- - wise, the Ambassador intends to bring this sharply to the attention of the Egyptian Government. IRAN We have informed our Embassy in Tehran that the whole range of current Iranian policy questions is re- - ceiving the Department's urgent attention. This subject was discussed during Mr. Churchill's visit and US-UK working groups are continuing their meetings. After reviewing the arguments pro and con regarding the desirability of furnishing financial aid at this time, as requested by Mosadeq, we have concluded that a favorable response should in no event be made be - fore expiration of his "ultimatum", and without prior consultation with the British. We believe that any budgetary support must be associated in some way with a solution to the oil problem. However, until this question has been worked out, it is important that Mosadeq not get the impression that the US has an entirely negative attitude. We expect soon to have a more definite view as to how to meet the problem. Our communication indicates that, in general, the British have taken a less alarmist view concerning the possibilities of chaos in Iran and continue to believe a good settlement can eventually be reached if the US and they both "stand firm. 11 They admittedly are prepared to assume a much greater risk in Iran than is the US. The British have stated, how- - ever, that they are prepared to deal with Mosadeq on any reasonable basis TOP SECRET SECURITY INF ORMATION