740.0011 European War 1939/14278: Telegram

The Minister in Iran (Dreyfus) to the Secretary of State

99. Reference to Department’s No. 64, dated August 16, 9 p.m. The Department will undoubtedly have received the Legation’s No. 92, August 15, 8 a.m., concerning the new British and Russian demands. The Legation is indeed in close and harmonious contact with diplomatic officers and Government officials and as a result was able to obtain so promptly the information contained in its No. 92, which was in the nature of a local scoop. The Department must realize [Page 402] that actions of this kind originate in London and hence it is not unnatural that our diplomatic or press representatives there are able to obtain advance information.

I appreciate the Department’s position as stated in the last sentence of its telegram and will make every endeavor in the future as I have in the past to forward prompt, precise and full information.

I am in daily contact with the Prime and Foreign Ministers who make it a point to keep me informed of the Iranian viewpoint. I have called to their attention on several occasions the danger to Iran of German fifth column activities and have mentioned Iraq as a specific example. Their replies which faithfully present the Iranian viewpoint have always been that the Germans came here at Government request, that they have proper employment, that they are committing no illegal acts, that they are under close surveillance and that their movements within the country are restricted. The Foreign Minister told me yesterday, to show how close is this surveillance, that there is an agent to watch every German.

The Department must realize the difficulty of obtaining reliable information as to Nazi activities in Iran. The British Intelligence officer with whom we are working closely has been unable through his agents to obtain information as to the internal setup of the fifth column organization. The Legation has, however, obtained the following reliable facts: There are in Iran between 2,000 and 2,500 Germans including families of whom perhaps 1,000 are heads of families and of whom about 700 are in Government employ. Almost none of these are tourists or recent arrivals. Most of them have legitimate employment although a few are doing propaganda and organization work under cover of employment by German commercial concerns. Fifth column activities are directed from the German Legation. Two of the leaders are Storm Troopers Mayer and Gamotta who have responsible employment with Shenkers. Propaganda is largely directed by Eilers, an archaeologist who has lived many years in Iran and who is co-author of a tract on German propaganda in the Near East. Germans are strategically placed in the radio station, railways, and other public services and are scattered through the country as agents of commercial organizations such as Shenkers and Ferrostahl. Thus there are German agents in all important public services and in all parts of Iran. Their organization centers in a Nazi club in Tehran known as the Brown House. This club formerly went in for military drilling and target practice but this has been stopped by the Iranian authorities. The organization is said to be disciplined and efficient with each man trained as to his duties either for sabotage or as an adjunct to invading German forces. An experienced American radio expert who is installing radio equipment for the Government [Page 403] is convinced that the Germans at the governmental radio station have set up special equipment which they are using to direct jamming operations originating in Berlin and directed against Allied broadcasts to this entire area. The above just has been brought to the attention of the British Minister who was not previously informed.

The British propaganda campaign against Iran abetted by private individuals and newspapermen has reached an intense pitch. This has resulted in the discrimination [dissemination?] of distorted or false news as, for example, a report from Delhi that a trainload of Germans had arrived in Iran, that from Cairo as to rebellion in the Iranian Army, report of tribal uprisings and distorted news as to the activities and movements of Germans in Iran. Newspapermen have assisted the campaign by accepting such British inspired news as true. For example the American representative of the Associated Press informs me that most of the news sent by press men in Ankara comes directly from the British Legation. The Iranian side of the story has never been told.

I do not minimize the fifth column danger and have frequently called it to the attention of the Department and local officials. I am convinced, however, that the British are using it as a pretext for the eventual occupation of Iran and are deliberately exaggerating its potency as an isolated arm. I have come to the conclusion that the British and Russians will occupy Iran because of overwhelming military necessity no matter what reply the Iranians make to their demands. I must add emphatically to avoid misunderstanding that I am in full agreement with the British action and believe it to be vitally necessary for the furtherance of our common cause.

The written reply of the Iranians to the British and Russian notes has not yet been delivered. The British Minister informs me that his conversation with the Prime and Foreign Ministers make it clear that the reply will be unacceptable to the British. I am of the opinion that invasion by both the Russians and British will come within a few days.

In view of the bitter feeling among the masses against the British and the Shah and considering that the Germans may be of assistance as agitators and directors it is not unlikely that there will be civil disturbance and rioting until the British and Russians gain control. The temper of the Army is increasingly uncertain and the danger of a coup cannot be excluded. In case of necessity I will bring our citizens into the Legation compound where I have no reason to fear for their safety.

I hope to have more specific news of the British reactions to the Iranian counter-proposal and of their immediate intentions within the next 48 hours.

Dreyfus