Memorandum, State Department Summary of Telegrams

NLTCNaval Aile)294 The OFFICE OF DECLASSIFIED THE SECRETARY OF STATE E.O. 12065, Sec. 3-402 WASHINGTON State Dept. Guidelines, March 6, 1982 By DB NLT, Date 9-6-s December 11, 1951 TOP SECRET SECURITY INEORMATION SUMMARY OF TELEGRAMS IRAN In Tehran Ambassador Henderson has talked with Min- - ister of Court Ala about the disorders and violence of recent days. Henderson reminded Ala of a conversation which took place between the two of them several weeks earlier in which Ala had said that the Shah has resolved that if Mosadeq, after his return to Iran from the US, should continue to pursue his previous policies and to have aroundhim the same type of advisers as had influenced him in the past, the Shah would have no other choice than to take steps to effect his replacement. Henderson asked Ala whether in the Shah's opinion Mosadeq had changed his policies and his advisers or if the time was near for the Shah to take the contem- plated action. Ala replied that the Shah did not believe the time had yet come for him to try to remove Mosadeq. He had been encouraged, for instance, at the recent shifts in Mosadeg's cabinet which he felt was both more loyal to himself and more effective against the Communists. FAR EAST The British High Commissioner for India, Sir Archibald Nye, has given Ambassador Bowles an account of the recently-held Bukit Serene Conference of British Far Eastern representa- tives. According to Nye there was unanimous agreement on the following points: 1) China has been seriously hurt in Korea, not so much in loss of manpower but in the fact that those men it lost were trained and much equip- - ment was destroyed. Moreover, it again set off inflation in China's cities which the Communists had earlier brought under control; 2) China badly wants peace in Korea but her pride and her desire not to lose face make ne- gotiations difficult, USSR would probably prefer to see the fighting continue; 3) French Indochina is now secure against the Communist force unless the Chinese Communists provide major assistance, which is unlikely unless Gen- eral de Lattre should make some unexpected mistake; 4) the most dangerous spot on the periphery of China is Burma where a weak government is dealing ineffectively with many different armed groups; 5) At present there are no signs of trouble between the USSR and China and in fact Russia seems to be handling China with much more tact than many people anticipated; and 6) TOP SECRET SECURITY INFORMATTON