891.6363/9–2247: Telegram
The Ambassador in Iran (Allen) to the Secretary of State
909. I understand Associated Press has cabled full story regarding open letter which Soviet Embassy here addressed to the local press September 20.1 Statement reviews history of oil negotiations with Iranian Government and points out advantages of Soviet proposals to Iran. Outstanding feature of Soviet statement is its general tone of persuasion rather than threats although last sentence reads: “Finally the execution of this agreement is in keeping with the principle of increasing Soviet-Iranian friendly relations.” The implication to [Page 957] Iranians is that failure to execute the agreement would decrease those relations.
Statement emphasizes that Soviet proposals are not for petroleum concession but for the creation of a mixed corporation and declares that: “Iran has never, in granting concessions, obtained such advantageous commercial provisions.” It adds that proposed Irano-Soviet company would not have its own police force “such as exists at present in a certain concession in Iran”. Both those statements are obviously directed against the British Oil Company. They undoubtedly typify the line Soviet propaganda will continue to take against the British concession, whether or not Soviets obtain an oil agreement with Iran. They constitute further evidence, in my view, that it is a mistake to think that an agreement with USSR concerning oil in northern Iran would ease the pressure against British and eventually American interests in the Persian Gulf.
Iranians are speculating that the comparatively reasonable tone of Soviet press release is an attempt to counter the effectiveness here of our recent statement condemning use of threats and intimidation. If the Soviets continue this new line of persuasion, they will stand a better chance of obtaining some kind of oil agreement here. My best estimate continues to be, however, that they will end up by getting little if anything. The threats they have already used are too well known to be dispelled by a sudden change of tactics.
[Here follow four paragraphs on the submission of the oil agreement to the Majlis.]
Sent Department 909, repealed London 118.
Department pass to Moscow as 105.
- A translation of the letter as it appeared in the newspaper Ettela’at on September 20 was transmitted by the Embassy in Tehran in despatch 506, September 27 (891.6363/9–2747).↩