891.77 Ulen & Company/2: Telegram
The Minister in Persia (Kornfeld) to the Secretary of State
[Received February 15—7:08 a.m.]
15. I have been asked informally by the British Minister to explain to Bennett that the British will uphold validity of option granted to the Persian Railways Syndicate. British Minister also made it plain that, while American interests would be gladly admitted to participation, yet if either Persia or America declined to accept an arrangement Persia’s chief securities could not be pledged to American loan until British claims against Persia had been taken care of. I was given to understand also that the British might consider it necessary to revert to the economic, although not the political, arrangements of 1907 in order to safeguard their interests.