Foreign Relations of the United States Diplomatic Papers, 1941, The British Commonwealth; The Near East and Africa, Volume III

611.9131/159

Memorandum by the Chief of the Division of Near Eastern Affairs (Murray)⁴¹

[Washington,] November 5, 1941.

Reference is made to Tehran’s despatch No. 115, of September 10, 1941, with which there is enclosed a copy of instructions to the Iranian Economic Mission to the United States.⁴² These instructions, which came into the possession of the Legation, indicate that the Mission will press for the conclusion of a trade agreement. It may be recalled that such a trade agreement was under consideration prior to the occupation of Iran by British and Russian military forces,⁴³ but discussions pertaining thereto were discontinued shortly before the occupation because of the uncertainty and apparent instability of conditions obtaining at that time in the Near East. The Economic Mission has now arrived in the United States, and it may be assumed that the Mission will revive the question of the trade agreement.

It is the recommendation of the Division of Near Eastern Affairs that these trade agreement negotiations be resumed for reasons of political expediency and in order to safeguard American trade interests in Iran during the post-war period.⁴⁴

A large area in northern Iran is now under Russian occupation. It has been established in reports received by the Department that the Russians in that area have engaged in political activities inconsistent with assurances given to respect the political independence and territorial integrity of Iran. These assurances, as you will recall, were referred to by the President in his telegram of reassurance to the Shah at the time of the occupation.⁴⁵ It is considered that the conclusion of a trade agreement with Iran would be consistent with this message of reassurance in that it would serve as a restraining influence upon possible Russian attempts in the future to dominate the economy and foreign trade of Iran. In view of these circumstances it is believed that a trade agreement with the United States would be welcomed by the Iranians and that, for this reason, the present time is propitious for the negotiation of a trade agreement favorable to American interests.

It may be assumed that both the Russians and the British will seek to utilize the occupation as a means of strengthening their economic ties with Iran. The occupation, therefore, might well provide an opportunity for either Russia or Britain, or both, to enter into trade agreements with Iran which would prove harmful to American trade in the post-war period. The conclusion of a trade agreement between the United States and Iran would anticipate such moves and would serve to safeguard American trade with Iran after the war.

Mr. Saleh, the head of the Iranian Economic Mission, is a high-ranking Iranian official of ability and integrity, and he is well known to the Division of Near Eastern Affairs. He was educated in American mission schools in Iran and is favorably disposed toward the United States. In view of his pro-American attitude it is considered fortunate that it is he who has been selected by the Iranian Government to conduct trade agreement negotiations.

Wallace Murray

41. Addressed to the Assistant Secretary of State (Acheson) and the Secretary of State.
42. Neither printed.
43. See pp. 383 ff.
44. The Secretary of State, the Assistant Secretary of State, and the Chief of the Division of Commercial Policy and Agreements agreed with the recommendation.
45. Dated September 2, p. 446.