611.9131/125: Telegram
The Consul at Tehran ( Moose ) to the Secretary of State
[Received October 14—1:58 p.m.]
Reference is made to the Legation’s telegram No. 197, August 28, noon, fourth paragraph.
[Page 686]The Consulate has been informed by reliable local importers that in the cases of various contracts awarded by the Iranian Government for the purchase of American products, the Iranian authorities have (1) attempted to change the currency of payment from dollars to Reichsmarks or pounds (sterling) or (2) failed to open dollar credits as agreed on or (3) revoked the remainders of letters of credit opened by the National Bank of Iran and [apparent omission] partially filled contracts.
It is not known whether this situation results from the current shortage of Iranian dollar reserves or from official policy. In any event, American manufacturers should exercise caution in submitting bids and in specifying terms of payment.