811.24591/5–2945
The Chargé in Iran ( Ward ) to the Secretary of State
[Received June 7.]
Sir: I have the honor to report that the negotiations for disposal to the Iranian Government of the American-built installations at Bandar [Page 569] Shahpur have made very little progress to date. As reported in the Embassy’s despatch No. 262 of April 9, “Disposal of American Installations at Bandar Shahpur”,58 an initial offer to negotiate was made by a note of April 2, 1945 from the Embassy to the Foreign Ministry, a parallel note being sent at the same time by the British Embassy. In its reply of April 12, copy of which is enclosed,59 the Foreign Ministry asserted that the structures should be turned over without charge, basing its claim upon a financial agreement between Iran and the Allies which it said was in effect.
Neither this Embassy nor the British Embassy was aware of any such agreement, and the Ministry was accordingly asked to identify it more exactly. A copy of the Embassy’s note of April 23 on this subject is enclosed.60 Having received no reply by May 26, the British Embassy addressed a further note to the Foreign Office (enclosed)58 saying that it was assumed the Iranian Government was not interested and that the British authorities were, therefore, free to make some other disposition of the properties. This was, of course, designed primarily to spur the Iranian authorities to act quickly.
I was on the point of sending a similar, but less drastic, communication on behalf of the American interest in the port, when a Foreign Office note dated May 22,61 but received on May 28, was delivered. From the enclosed copy of that note it will be seen that the Ministry refers specifically to an agreement between Iran, the Soviet Union and the United Kingdom, which it says went into effect as of September 1, 1941.62
After some search, the British Embassy has informed me that it has tentatively identified this as a draft agreement presented by the Iranian Government to the British and Russian authorities in 1942. I am told that it has never been signed, most certainly is not in effect, and is not even being considered by the British and Soviets as a basis for negotiation.
We shall, of course, try to straighten this matter out with the Iranian authorities. The present despatch is intended merely as an interim report to keep the Department posted.
It may be well to say that there appears to be a strong feeling among Iranians that Allied fixed installations in Iran should be turned over to the Government entirely without charge, as compensation for Iran’s [Page 570] economic losses during the war. Speaking in the Majlis a few days ago, Deputy Rahimian not only made this assertion but added that a gift of one billion dollars should be thrown in. His remarks were received with applause. I think it quite likely, therefore, that the Iranian Government will resist all requests for payment for fixed structures.
Respectfully yours,
- Not printed.↩
- No. 434, not printed.↩
- No. 239, not printed.↩
- Not printed.↩
- No. 1288, not printed.↩
- Under article 12 of this agreement, the note stated, the two Allied Governments would cede free of charge to the Iranian Government all of their immovable installations and landing fields in Iran when no longer needed for military operations and would give the Iranian Government the right to purchase movable property and railway equipment.↩