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5/15/54: Reel 3, Track 1, Page 1 MR. HARRIMAN: ...I wanted to correct what sounded contradictory in the statement that I came to the conclusion that no arrangement could be made with Mossadegh. with I felt in the beginning that/tt the momentum of having reached this decision to negotiate, if the British had sent someone who had had experience x and who had handled it reasonably well, that there was a very real chance to come to an understanding. I fully agree with what Dean saidwethere was a revolutionary spirit, which was in everyone, including the sensible people who weren't part of the government. Mossadegh whipped it up and then, as these negotiations failed, he whipped it up still further. And of course the st of 1) when Stokes' negotiations failed, that's when I came to the conclusion that there couldn't be any agreement. I wanted to say this in partial and slightly different attitude about the Tranians' ability to handle expansion; I was very much impressed by some of the things that they had done: I went to see somo of the dams and some other developments; I was very much impresse by a doctor who had handled the malaria control, and I saw a good many of the things that they were doing. And although of course they couldn't go under the Seven-Year Plan, I was very mich encouraged which I think later on, in the Point Four work that was done there, justified the possiblity of our helping the Iranians in spite of the many political and psychological difficulties that were there. There were a good many Iranians who were very sober about the necessity of doing things and the Court was- the better elements in the well as a number of the people of same substance. So I don't think the idea of-the idea that George had of working with the Iranians in their economic development and along with that the social changes, land reform and otherwise, which the Shah had gone ahead with very substantial land distribution. If the oil settlement had been made that summer, I think Iran might have moved forward enough, not as rapidly as it certainly can's but with reasonable rapidity. Everything you did dx in Iran was different from other countries, because the old Shah had used