Telegram from Ambassador Henry Grady to Secretary of State Dean Acheson, Number 458

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INCOMING TELEGRAM Department of State COPY / OF2 TELEGRAPH BRANCH 12 D X mop SECRET 25 A Action Control: 52 Rec'd: NEA August 1, 1951 FROM: Tehran Tinbo 4:02 a.m. Info DO TO: Secretary of State ARCHIVES DACLASSIFIED SS RECORDS SERVICE' & a 11632. Sec. 3[E) and <* G NO: 458, July 31, Midnight Dept. af know, 4-11-HE RTTR PROJECT NLT 78-2 E By NINC p NARS se as 9.24.7t DOK PRIORITY SENT NIACT LONDON 99 (EYES ONLY GIFFORD), I RPTD PRIORITY DEPT 458. FROM HARRIMAN FOR THE PRESIDENT AND SECRETARY. NO DISTRIBUTION EXCEPT AS DIRECTED BY THE SECRETARY'S OFFICE. I have had talks today with Shah, Mosadeg and Busheri and the Cabinet has had long session. Mosadeg and Busheri cempron came to dinner tonight to explain Persian Cabinet decision. I believe Iranian Govt wants to give cordial and responsive reply to the British but their principal difficulty has been to avoid public admission that they alone are to blame for existing tension. They have decided that it wld not (rpt not) be possible for them to give type of reply desired without some modification in British mag. Under the circumstances, they have indicated that if certain changes in the wording of British msg were made, they cld avoid qualifying phrases and conditions in the Iranian reply. If these changes are acceptable to British Govt the Iranian reply can be considered as official. Amended British msg follows: *HMG have received through Mr. Harriman the Persian Govt's formula for negotiation between HMG on behalf of the Anglo= Iranian Oil Co., and the Persian Govt's msg for discussion of matters of mutual interest to the two govts. "His Majesty's Govt are desirous of availing themselves of this formula and are prepared to negotiate in accordance with it, but it will be appreciated by the Persian Govt that the negotiations, which His Majesty's Govt for their part will enter into with the utmost good will, not (rpt not) be conducted in satisfactory manner unless the present atmos- phere is relieved. On the assurance that the Persian Govt recognize this fact and will enter into discussions in the same spirit, a mission headed by Cabinet Minister immediately set out. pua *HMG TOP REPRODUCTION OF THIS MESSAGE IS PROHIBITED