Memorandum, State Department Summary of Telegrams

NLTI Naval Ade) 240 OFFICE OF DECLASSIFIED THE SECRETARY OF STATE E.O. 12065, Sec. 3-402 WASHINGTON State Dept. Guidelines, March 6, 1982 September 10, 1951 By DETS NLT, Date 9-5-85 TOP SECRET SUMMARY OF TELEGRAMS IRAN The British Embassy has given the Department the substance of a message which the British Ambassador in Tehran has been instructed to deliver to the Shah (and which he hoped to be able to deliver on Saturday). The British message states: 1) Prime Minister Mosadeq has made no new proposals since the departure of Mr. Harriman; 2) there can be no question of a resumption of negotiations until the Iranians make new proposals and indicate they are prepared to reach a reasonable settlement; 3) Mosadeq has shown no willingness to reach a settlement and consequently the country is threatened with economic ruin from which the Tudah (Communists) will doubtless take advantage; 4) the Shah should urgently consider whether the interest of the country does not demand resolute action to replace the present regime by one capable of pursuing Iran's real interest, in which case the British would be quick to respond to any evidence that the new government is willing to reach a settlement. The British believe that Seyid Zia would best serve true Iranian interests; and 5) the British may have to take steps soon to protect their own economy against the effects of the present situation in Iran. The mea- sures would not be an act of retaliation, although they would damage the Iranian economy, but they would be taken to protect the British economy at a difficult time. The Department has informed Embassies London and Tehran that it questions the wisdom of the British asking the Shah to dismiss Mosadeq and specifying an individual to replace him, and we have told the British Embassy here that we cannot instruct Ambassador Grady to take a similar line. However, we have instructed Grady that he may explain to the Shah our disappointment over the intransigence of the present govern- ment and express our hope that the Shah can exert an influence in the direction of modifying its attitude, even if if means a change of government. Mosadeq called a session of the Majlis yesterday to ask for a vote of confidence on his 15-day ultimatum to the British either to make new proposals or to be expelled from Iran. Ambassador Grady reports that Mosadeq resorted to strong arm methods before the meeting, threatening the deputies with physical vengeance if they did not appear in the Majlis and vote "properly. " Nevertheless, the Majlis again boycotted Mosadeq and less than a voting quorum of deputies appeared yesterday. Mosadeq announced that he intended to carry out his plan of expelling the British, des- - pite the action of the Majlis. TOP SECRET