891.5151/200

The Secretary of State to the Chargé in Iran (Engert)

No. 527

Sir: Reference is made to the Legation’s telegram No. 197 of August 28, noon, 1940, paragraph 5, and to previous correspondence concerning the problem of securing effective payment for American exporters who made shipments to Iran shortly before the enactment of the Iranian Foreign Exchange Law of March 1, 1936.

You are instructed, in your discretion, to continue your efforts to have dollar payments effected. It would appear appropriate to remind the Iranian authorities of the communication from the Ministry of Foreign Affairs dated September 4, 1939,84 outlining the procedure whereby the American creditors concerned could be effectively paid, to indicate the cases which have come to your attention where payment has not yet been received, and to request an investigation with a view to the early removal of the difficulty.

In this connection there are enclosed a copy of a letter of August 28, 1940 from the Tuthill Spring Company, Chicago, Illinois, and [Page 685] a copy of the Department’s reply,85 which are believed to be self-explanatory.

In regard to the suggestion made at the conclusion of the Legation’s telegram above mentioned, it is not the Department’s practice to be instrumental, in the supposed interest of American concerns, in attaching funds located in this country belonging to a foreign government. Such concerns are of course free to adopt any course which is open to them and which they may consider expedient.

Very truly yours,

For the Secretary of State:
Henry F. Grady
  1. Ibid., p. 544.
  2. Neither printed.