Office of the Historian

891.24/284: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

London, November 11, 1942—6 p.m.
[Received November 11—3:30 p.m.]

6340. The substance of Department’s 5640, November 10, 8 p.m. concerning Iran has been given to the Foreign Office and the various points raised by the Department have been discussed with the Foreign Office.

1.
Foreign Office confirms report that British Minister at Tehran has recommended that the announcement on wheat be made conditional on undertakings by Iran as outlined by the Department. Foreign Office has already advised British Minister that it does not view the proposed undertakings favorably. Foreign Office, however, now states [Page 192] definitely that it wishes the announcement on wheat to be “bound up” with a long term solution of the currency problem. It feels as pointed out in the Embassy’s 6257 of November 7, 6 p.m., that the establishment of a currency commission with full control over currency matters would be an effective approach to such a solution.
2.
Foreign Office agrees with Department that Anglo-Iranian agreement of May 26 would be adequate to meet British needs if fulfilled by the Iranians. Difficulties as frequently created by the Majlis, however, make fulfillment questionable. The Foreign Office believes therefore that the creation of a purely Iranian currency commission, the only kind of a commission which it feels there is possibility of getting authority to set up, would not only result in more expeditious meeting of currency and related problems but it would at the same time remove the danger of the Majlis obstructing solutions in the hope of gaining further concessions. Foreign Office feels strongly that unless the establishment of such a commission is insisted on now before the announcement on wheat is issued a good opportunity for finding a long term solution of the currency problem will be lost. British authorities, the Foreign Office stresses, do not want to be left in the position where whenever a solution to some pressing phase of the currency situation has to be found, the Majlis has to be approached.
3.
Foreign Office states that the proposed wheat announcement, as amended, has been presented to the Iranian authorities for their information and that the Iranian reaction to it is favorable. British Minister has, however, been instructed not to agree to its publication until, as indicated above, the establishment of a currency commission has been authorized.
4.
Foreign Office today referred to the view which was expressed in the Department’s 5534, November 5, 8 p.m., that a continuous expansion of the Iranian currency could not be considered a satisfactory solution. It stated in this connection that it is in entire agreement with the Department’s view and that it had, consequently, placed all pertinent facts before British Treasury officials with the request for suggestions on how the currency problem in Iran might be met without resorting to repeated expansions of the currency.
5.
With reference to the final paragraph of the Department’s telegram 5640, Foreign Office states that it will be glad to keep us informed of developments in connection with the shipment of wheat. It stated further that the Department’s understanding that Middle East shipping programs are decided here is correct and added that it is taking all the necessary steps here.
Winant