611.9131/121: Telegram
The Chargé in Iran (Engert) to the Secretary of State
Tehran, August
28, 1940—noon.
[Received 1:54 p.m.]
[Received 1:54 p.m.]
197. My telegram No. 194, August 26, 10 a.m. Consul Moose and I feel the following factors should be taken into consideration in connection with Irano-American trade relations.
- 1.
- Local dealers now claim definite discrimination against American automotive products through the operation of the clearing or barter agreements with Germany and Russia.
- 2.
- During the past year consular invoices certified for the shipment of Iranian products to the United States have doubled and local merchants report a marked increase in such exports. The United States is now the only important market supplying free exchange to Iranian exporters, but part payment of Iranian purchases from Russia and Germany is being made in dollars.
- 3.
- It is said that administration of exchange control is manipulated so as to favor purchase of German automobiles. It is represented that 413 trucks have just been ordered from Ferrostahl, Germany, which normally would have been ordered from America.
- 4.
- Reliable non-Iranian importer of American products states he has seen a strictly confidential circular issued by the Ministry of Finance requiring that all bids even the lowest on supplies for the Iranian Government are to be rejected if payment is demanded in dollars unless the articles are absolutely unobtainable elsewhere.
- 5.
- Referring to my despatch No. 1677, September 11, 1939,83 it does not appear that a single payment has been facilitated to American creditors. The Consulate therefore suggests that consideration be given to the possibility of attaching Iranian Government funds on deposit for example with Irving Trust Company and Chase National Bank, New York, for the protection of the American firms.
Engert