888.2553/8–554: Telegram
No. 490
The Ambassador in Iran (Henderson) to the Department of State
309. Following is text joint Iranian-British statement being released Tehran August 5 on compensation.
“In course frank and friendly discussions on subject compensation, there has been meticulous examination of all claims and counterclaims of both sides. As part of general settlement of oil problem Iranian Government have agreed pay AIOC net amount of compensation totalling pounds 25 million payable over ten years and free of interest. Payments will not begin until January 1, 1957. Settlement takes into account value of internal distribution assets, Kermanshah refinery and Naft-I–Shah oil field, disruption of enterprise of AIOC and disruption of Iran’s economy arising out of failure of parties reach settlement following upon nationalization of industry in 1951.
This agreement in conjunction with agreement to be concluded with consortium to settle long-standing dispute and it is hoped will inaugurate new era in Anglo-Iranian relations.”