891.51/587: Telegram
The Minister in Iran (Dreyfus) to the Secretary of State
[Received August 19—3:18 a.m.]
850. Millspaugh now states that certain items of receipts which have just come to light will probably reduce substantially the amount of the loan or credit which Iran will require. Main item consists of 300 million rials which British are now prepared to pay on account of debt to Iranian railways. Budget is being restudied in light of this development and Department will be informed as soon as possible of results. Millspaugh regrets necessity for these constant changes. However, the fault is not his since infinite time and patience have been required to make order out of muddle in which he found Iranian finances. He is beginning to see light and I am hopeful he can soon present a firm and exact statement of amount of credit Iran will require.
Full information will be made available to Gunter when he arrives.