891.00/1944: Telegram
The Secretary of State to the Minister in Iran (Dreyfus)
Washington, December 1, 1942—5 p.m.
352. Your 378, November 18, 1942. The Department has discussed the various points raised in your telegram with Dr. Millspaugh who has indicated the following views:
- 1.
- He believes that it would be very desirable to prohibit the export of foodstuffs and recognizes the fundamental importance of increasing essential imports. He feels that it would be advantageous to make an early announcement that a substantial volume of wheat imports are on the way and he suggests that this announcement should be made by an official of high authority. Care should be taken not to be precise as to the actual quantity involved. Such an announcement, he feels, would have an important psychological effect, tending to discourage hoarding and speculation.
- 2.
- He favors credit restrictions providing the intent is to restrict speculative credits rather than to restrict credits generally, which might adversely affect production.
- 3.
- With respect to excess profits his feeling is that the Iranian Government should begin immediately the collection of all relevant information on taxes and that such data should be translated into English. He feels that the question of taxing excess profits should be left until the whole tax system has been surveyed in the light of existing needs and conditions.
- 4.
- With respect to rationing and laws to control prices, rents, speculation and hoarding, Dr. Millspaugh feels that although such measures may be desirable he does not believe that he can comment usefully until he has had an opportunity to survey existing legislation and administrative enforcement.
- 5.
- With respect to control of Allied buying, although such control would appear to be highly desirable in principle, in the absence of detailed knowledge of the existing practices and procedures Dr. Millspaugh does not feel that he could attempt any detailed comment.
- 6.
- With respect to putting silver token coins in circulation, Dr. Millspaugh feels that this would be desirable if they are needed and if the necessary silver and alloy metals are available.
- 7.
- Dr. Millspaugh does not wish to comment on the American-British rial loan proposal in the absence of more complete information as to the purpose of the loan.
- 8.
- Dr. Millspaugh does not perceive any objection to the revaluation of the existing gold and silver holdings providing that the resultant profit remains in the Bank Mellie as part of the monetary reserve.
Hull