891.6363/10–1147: Telegram
The Ambassador in Iran (Allen) to the Secretary of State
urgent
992. Prime Minister Qavam informed me this morning that he plans to submit report on Soviet oil question to Majlis on October 19 in secret session. He said he would not propose any action for Majlis to take, leaving decision fully in Majlis hands.
He added in strictest confidence that his plan was for question to be referred by Majlis to appropriate standing committee and he read me suggested resolution which he himself had drafted but which he said would eventually come out of the committee as if at committee’s own initiative. The resolution, if enacted, would call on Iranian Government to conduct oil explorations for five years through experts employed by Iran to determine whether oil existed. [It also?] provided for formation of mixed Soviet-Iranian company, 51 percent of shares to be Iranian, to exploit any oil found in commercial quantities. Qavam said he knew such arrangement would be unsatisfactory to Soviets but it would put Iran in better light in world opinion and might avoid drastic Soviet action. He emphasized that resolution would appear to be inspired solely by Majlis and not on Government initiative.
I said I was aware he was faced with difficult job in drafting resolution to steer through middle ground. As regards his statement, however, that his proposal was certain to be rejected by Soviets, I expressed view that it would be perhaps even more objectionable to Iranian public which appeared at present to be 95 percent opposed to any mixed Soviet-Iranian company. I predicted that major objection would be raised to his proposal on ground that it would create [Page 968] one further moral obligation on Iran to make some kind of oil agreement with USSR eventually.
Qavam said he did not envisage that draft resolution would ever be enacted by Majlis and was merely device to drag question out indefinitely and avoid outright refusal of Soviet request for oil agreement.
As regards Qavam’s intention to present report in secret session, I said I thought it would be better to present it in open session, since Soviets would always claim inadequate fulfillment of his undertaking to present their proposals to Majlis. Qavam said he personally agreed with me fully but that members of Majlis preferred that report be made in secret session. After our discussion he indicated intention of going into this question further with Majlis members.
I hope Qavam will adhere to his plan of making report on October 19 and that this phase of question will at least be out of way. As regards his proposed solution and his intention to drag question out indefinitely, I suspect that his hand will soon be forced by Shah, Majlis, or public opinion. I consider his solution very bad one and gave him no possible basis for claiming that he has obtained my concurrence.
Sent Department 992. Pass to London 136 and Moscow 120.