Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Iran Hussein Ala, and C. Vaughan Ferguson

10073 IDENTIAL s/s DEPARTMENT OF STATE 729 Gairli Memorandum of Conversation 131 DATE: April 27, 1950 SUBJECT: Call of the Iranian Ambassador on the Secretary AND PARTICIPANTS: The Secretary The Iranian Ambessador Also Present: C. V. Ferguson, GTI COPIES TO: S/MDA DRN s/s Embassy, Tehran G NEA E IAD for CIA -1402 The Iranian Ambassador called on the Secretary on April 27 to say goodbye prior to his departure to assume his duties as Minister of Foreign Affairs. The Secretary said that he was sorry to see the Ambassador leave but wished to congratulate him on his new appointment and welcome him to the "Union* of Foreign Ministers. The Ambassador traced his mission in the United States from the days in 1945 and 1946 when his, country Was directly threatened by Soviet aggression which it vas able to resist with the greatly appreciated support and assistance of the United States. He said that his country was profoundly grateful. He went on to say that Iran is once again confronted with a grave crisis, this time economic rather than political. Mr. Ala described the present situation in Iran briefly mentioning the crop failures of last year, the shortage of money, rising unemployment, business failures, and an increasingly unfavorable balance of trade. He said that the Iranian Government was doing everything within its power to remedy the situation but it was now certain it must have outside assistance. Mr. Ala stated that the situation as he had described it was being exploited fully by the Communists and the danger of a Comanist-inspired disturbance of major proportions was very real. In this connection he referred to the masses of agricultural workers who had been forced in droves into the cities looking for food who could very easily become the DECLASSIFIED pawns E. O. 11652, Sec. 3(E) and 2.29.25 5(D) or (E) Dept. of State letter, Alug By NLT- HC NARS Date 6-4-76