611.9131/107: Telegram
The Chargé in Iran (Engert) to the Secretary of State
Tehran, February 3, 1940—8 p.m.
[Received February 5—7 a.m.]
[Received February 5—7 a.m.]
25. My 14, January 19, 8 p.m. The Prime Minister handed me a memorandum this afternoon of which the following is the substance, including some explanations he added verbally.
- 1.
- Iran intends to spend about 70,000,000 dollars in the United States over a period of 3 years for the purchase of equipment required for factories, railways, ports and mines. In order to balance [Page 665] these purchases as much as possible Iranian exports to the United States are to be increased, and American advice would be sought as to the best means of intensifying the production of articles now being exported to America, or of developing new resources for which there may be a market in America.
- 2.
- In the absence of a clearing agreement it is suggested that the American Government recommend a financial institution which could act as purchasing agent, and help create and develop markets for Iranian products.
- 3.
- The Iranian Government proposes the immediate negotiation of a commercial agreement.
- 4.
- Should the American Government think well of this plan in principle the Iranian Government could designate experts to discuss details.
Although the Prime Minister did not refer to a possible oil concession it was obvious that he had this kind of arrangement in mind when he made the statement reported in my 11, January 17, 11 a.m.61
Engert