Letter from Senator Edwin Johnson to Matthew Connelly, with a Reply from Joseph Short, with Attachments and Related Material

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n 134-B August 16, 1951 Dear Senator Johnson: Matt Connelly has asked me to reply to your letter of July thirtieth in which you ask for information concerning this Government's policy toward Iran with which to reply to a letter from one of your constituents, Mr. D. B. Summers of Walsenburg, Colorado. The quotation to which Mr. Summers refers is correct. x101. - E He may be interested in the full text of the President's message x134 to the Prime Minister of Iran, which I enclose. As you know, there has been a great public demand in Iran for nationalization of the oil properties heretofore adminis- x56 tered by a British Company. The oil of Iran is of vital importance X48 in the economy of the free world and any sustained interruption of its flow would be detrimental to our security interests. We are, therefore, anxious to do everything possible to assure a continued flow of oil from Iran. Furthermore, the situation created by the "unhappy dispute" between the Iranian Government and the British oll interests in Iran has been, in the President's words "full of dangers" because of the precarious position of Iran in relation to x 220 the Soviet Union. We certainly do not want to see Iran overrun by the Soviet Union. Nor do we want to see a revolution which x 263 might lead to communist domination. The United States has always recognized the right of a sovereign country to nationalize industry or resources within its X 172 borders provided that when such action is taken, adequate, prompt and just compensation is made by the government concerned to American companies whose properties have been taken. In the light of these facts the President was able to say that "we were happy to see that the British Government has on its part accepted the principle of nationalization. Such ac- ceptance by the British Government provides the only basis for a resolution in Iran of a situation which threatens to deprive the 134-Misc