Papers Relating to the Foreign Relations of the United States, 1924, Volume II

891.77 Ulen & Company/2: Telegram

The Secretary of State to the Minister in Persia (Kornfeld)

[Paraphrase]

Washington, February 26, 1924—3 p.m.

16. Legation’s 15 of February 15, noon, and 17 of February 23, noon.¹⁷

1. Portions of Bennett’s cables of February 6 and 8¹⁸ regarding state of his negotiations have been confidentially referred to Department by Ulen & Company. Purport of these passages seems to be that if the British should insist on the settlement of their claims for war-time subsidies to Persia it would become difficult to float an American loan to Persia for its road-building projects. There is also evident in Bennett’s messages a wish that the Legation be instructed to give diplomatic support in putting through, without reference to British claims, an American loan of reasonable sum which shall have acknowledged priority.

2. You are instructed to lend every proper assistance to American enterprises in Persia. But, while the Department will uphold the principle of equal opportunity, it does not approve the practice of intervening abroad in order to facilitate the floating of foreign loans in the United States. Department’s 11 of February 12, 2 p.m.¹⁹ sufficiently explains its position. To avoid misunderstanding, Bennett should be advised of Department’s general attitude.

3. Report by cable and pouch concerning railway options claimed by British, about which Department has insufficient information.

4. Report any advance made toward settling the British claims against Persia referred to in Legation’s 17 of February 23. Also inform Department by cable if there should be any manifestations of British policy as mentioned in Legation’s 15 of February 15, noon.

Hughes

17. Latter not printed.
18. Neither printed.
19. Not printed; it stated that if consulted with regard to a loan to Persia the action of the Department would be limited to indicating whether or not there was any objection under the circumstances to the proposed flotation of a loan in the United States without assuming any responsibility in connection with such flotation (file no. 891.01/5).