888.2553/5–3154: Telegram
No. 470
The Ambassador in the United Kingdom
(Aldrich) to the
Department of State1
[Received 10:55 a.m.]
5432. Limit distribution. For Hoover. Foreign Office has shown us Eden’s report his conversation May 29 with Iranian Ambassador Soheily, who went Geneva under instructions discuss nationality of proposed operating companies with Eden.
Main point made by Soheily was not only would British nationality be unacceptable to Iranian Government but companies must be Iranian. Eden indicated Iranian Government views would be considered but made no commitment. Certain other issues involved in oil talks, such as volume of production, were discussed but no decisions reached. Soheily also raised matter of compensation and suggested this be disposed of by equating Iranian and British claims. Eden told him this “would not do” and restated British position as put forward by Ambassador Stevens in his talks with Iranian Government on subject. Eden said British willing consider figure in neighborhood of one-half of the 300,000,000 pounds previously mentioned, and were awaiting Iranian Government reaction. Soheily suggested question be referred to single neutral arbitrator, say Belgian, [Page 1020] for decision but Eden said HMG preferred continue direct negotiations.
In latter connection Foreign Office disturbed at report just received from British Embassy Tehran to effect Iranians insisting on exhaustive review of all claims and counterclaims, which Foreign Office thinks will greatly delay settlement.
- Repeated to Tehran.↩