DEPARTMENT OF STATE Memorandum of Conversation
April 27, 1950
SUBJECT: Call of the Iranian Ambassador on the Secretary
PARTICIPANTS: The Secretary The Iranian Ambassador Also present: C.V. Fergusson, GTI
Copies to S/MDA S/S DRN G Embassy, Tehran NEA E IAD for CIA
The Iranian Ambassador called on the Secretary on April 27 to say goodbye prior to his departure to assume his duties as Minister of Foreign Affairs.
The Secretary said that he was sorry to see the Ambassador leave but wished to congratulate him on his new appointment and welcome him to the "Union" of Foreign Ministers.
The Ambassador traced his mission in the United States from the days in 1945 and 1956 when his country was directly threatened by Soviet aggression which it was able to resist with the greatly appreciated support and assistance of the United States. He said that his country was profoundly grateful. He went on to say that Iran is once again confronted with a grave crisis, this time economic rather than political. Mr. Ala described the present situation in Iran briefly mentioning the crop failures of last year, the shortage of money, rising unemployment, business failures, and an increasingly unfavorable balance of trade. He said that he Iranian Government was doing everything within its power to remedy the situation but it was now certain it must have outside assistance.
Mr. Ala stated that the situation as he had described it was being exploited fully by the Communists and the danger of a Communist-inspired disturbance of major proportions was very real. In this connection he referred to the masses of agricultural worked who had been forced in droves into the cities looking for food who could very easily become the pawns of the Communists. He also mentioned the intrigues of former Prime Minister Ahmad Qavam in France, where he was actively conniving with Iranian Communist exiles to overthrow the regime.
The Ambassador said he would like to be able to take back to his people some expression of United States good will for his country and concern over the present situation there.
The Secretary told the Ambassador that he certainly could take back a message of good will and sympathy from the United States. He said that the Iranian situation was being actively studied in the Department and that United States policy on the question of Iran\'s needs was by no means frozen. He remarked that he had been following events in Iran with great interest and expressed the hope that Iran would soon be in a position to sign the MAP bilateral agreement. Mr. Ala replied that this would be finished any day now. The Secretary added that he would like to point out that foreign assistance is never of any value to a country which lacks the internal organization necessary to make use of the assistance. He said he was sure the Ambassador would agree that the Iranian Government up to the present moment had not given any evidence that it was prepared to institute the necessary reforms and that he was confident the Ambassador would on his return use his very great influence on the Shah to head matters in the proper direction.
Ambassador Ala assured the Secretary he would do his best to do as he desired. He said he understood that the question of Iran would be discussed at the forthcoming meeting of the Foreign Ministers in London and he hoped that Iran\'s interests and needs would be given full consideration. He mentioned Iran\'s dispute with the British over the Anglo-Iranian Oil concession and said Iran had not received fair treatment.
The Secretary replied that it was probable that he would discuss Iran with Mr. Bevin and that the Ambassador could be assured that Iran\'s best interests would be taken into full consideration.
NEA:GTI: CVFerguson:jaw