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OCR Page 1 of 2NLTCNoval Aide) 235
OFFICE OF
THE SECRETARY OF STATE
the
WASHINGTON
DECLASSIFIED
E.O. 12065, Sec. 3-402
August 27, 1951
State Dept. Guidelines, March 6, 1982
By DEB NLT, Date 4-5-85
TOP SECRET
SUMMARY OF TELEGRAMS
IRAN
Embassy London reports that because of strong objections
by Stokes to the proposed measures to control Iran's use
of its sterling balances a British decision on the matter has been delayed.
Stokes is apparently opposing any move at this time which would harden the
Iranian attitude and is trying to have the maximum emphasis laid on the fact
that the oil talks were "adjourned", not broken off. The Embassy comments
that Prime Minister Attlee and other Cabinet members, with one eye on Brit-
ish domestic reaction, evidently favor a show of firmness and Stokes will
have a difficult selling job.
The measures under consideration would suspend conver-
sion of sterling for dollars under the Anglo-Iranian understanding and would
make Iran's use of transferable account sterling subject to UK Treasury
control. The main purpose would be to prevent or limit Iranian purchases
of oil or oil equipment, sugar and iron and steel products.
UK-EGYPT
From Cairo Ambassador Caffery reports that there is a
division within the Egyptian Cabinet on the timing of an
announcement that the Government will abrogate the Anglo-Egyptian Treaty
before the next speech from the Throne. The actual abrogation declaration
will probably be made in late October.
TRIESTE
In a conversation with an official of our Embassy in Rome
the Italian Acting Foreign Minister raised the question of
Trieste, saying that he wished to discuss it on a purely personal basis. He
pointed out that the question was causing grave concern to the Italian Govern- -
ment and that one of the chief objectives of Prime Minister De Gasperi's visit
to Washington would be to try to explain to US officials the Italian point of
view on the issue.
The Acting Foreign Minister went on to say that he was
fully convinced that an unfavorable settlement of the Trieste issue would not
only bring about the downfall of the Italian Government but would wreck
De Gasperi and the Christian Democratic Party. If that happened, a nationalist-
clerical group would come into power, and, while the mass of the Italian
TOP SECRET