391.1164/133

Memorandum of Conversation, by Mr. Gordon P. Merriam of the Division of Near Eastern Affairs

Participants: The Iranian Minister, Mr. Schayesteh
Mr. Murray96
Mr. Alling97
Mr. Merriam

Following a discussion with the Iranian Minister this morning bearing on the desire of his Government to obtain credits, locomotives, and assistance and supplies for the creation and operation of an airplane factory in Iran,98 Mr. Murray observed that approximately five months had now gone by since the representatives’ of the Presbyterian Board had arrived in Tehran for the purpose of arranging the terms of payment for the Mission’s educational properties.

For the information of Mr. Schayesteh, who had not been directly concerned with the matter thus far, Mr. Murray briefly reviewed the facts of the case, stating that it had been the original astonishing intention of the Iranian Government to take over the educational properties of the Mission, which had been working in Iran for a hundred years, on two weeks’ notice, terms of payment to be discussed [Page 696] subsequently. Following the intervention of this Government, the Mission was permitted to operate as before until the end of the school year, which would terminate in the latter part of May, thus affording an opportunity for a discussion of terms before the properties should be taken over.

Mr. Murray declared that five months had now passed without any progress having been made, and that the Iranian Government had shown no sign of making adequate, prompt and effective payment for properties worth more than two million dollars. The Iranian Government could not expect to assume control until the schools had been paid for; moreover, since the termination of the Mission’s educational work would result in a drastic curtailment of its activities in Iran, the Mission would have no use for rials but would require payment in dollars.

The Iranian Minister observed that the Presbyterian Mission schools were very highly regarded in his country and that there was no objection to them. Everyone regretted that they would have to go. The fact of the matter was that his Government desired to get rid of the Russian schools, but, of course, it had been necessary to proceed on a non-discriminatory basis, with the result that the American schools were affected also.

Mr. Murray told the Iranian Minister that, if his Government should take over the schools without proper compensation, Iran would undoubtedly have a very bad press in this country, and that the relations of the two countries would doubtless be subjected to a certain strain.…

. . . . . . . . . . . . . .

Mr Murray terminated the interview by stating that the Department took a very deep interest indeed in the question of a proper settlement for the Mission properties. He expressed the earnest hope that the Minister would impress upon his Government the fact that we were following the matter very closely and anxiously.

  1. Wallace Murray, Chief of the Division of Near Eastern Affairs.
  2. Paul H. Alling, Assistant Chief of the Division of Near Eastern Affairs.
  3. For correspondence on this subject, see pp. 638 ff.