Foreign Relations of the United States, 1952–1954, Iran, 1951–1954, Volume X

888.2553/7–3054: Telegram

No. 486
The Ambassador in the United Kingdom (Aldrich) to the Department of State¹

secret

London, July 30, 1954—6 p.m.

549. Re Embtel 541, July 30.² Foreign Office confirms information contained first paragraph reference telegram. Stevens will attempt persuade Iranians to (1) increase compensation to pounds 30 million, and (2) reduce payment period to 12 years. First payment would be due 2 years after date of agreement, with annual payments next 10 years thereafter. Foreign Office points out this time period not in conformity with point (3) US–UK memo of understanding (Embtel 4178, March 26, 1954) but hopes UK will not object, in view of much smaller sum than originally contemplated.

. . . . . . .

Aldrich

1. Repeated to Tehran.
2. In telegram 541 Ambassador Aldrich informed the Department and Ambassador Henderson that the AIOC directors the previous day had considered the Iranian compensation offer; that he, Aldrich, believed the AIOC had decided to accept the present offer if necessary but hoped to raise the amount by five million pounds and to shorten the payment period. If this effort failed, however, it was Aldrich’s view that the British would not allow the compensation issue to drag beyond the negotiation of the consortium agreement. (888.2553/7–3054)