891.51A/867: Telegram
The Minister in Iran (Dreyfus) to the Secretary of State
[Received October 17—4:15 a.m.]
1000. My 999, October 15. Prime Minister, Millspaugh and I have had long and frank exchange of views on subject of resignations.
I began discussions by expressing my regret at the unfortunate turn of events which had resulted in the resignation of the Millspaugh Mission.
Millspaugh then expressed his deep regret at finding himself obliged to resign since he has a great regard for Iran and a deep desire to be of service. His step was taken he stated because lack of cooperation on the part of the Majlis and most of the Government had made it useless for him to carry on. For example, the Majlis was holding up three important bills without which he could not see his way clear to continuing. These were the income tax law, the bill for engagement of 60 Americans and the bill calling for appropriation of 400,000,000 rials for grain purchases.
The Prime Minister then expressed his great regret at the resignation of the Millspaugh Mission, especially since he had been to a great extent responsible for bringing Americans to Iran. He stated that he believes he has offered the fullest cooperation to the Mission, mentioning particularly that he had agreed to the employment of any personnel requested and had approved and forwarded to the Majlis without amendment any legislation asked for by Millspaugh. Millspaugh agreed that Soheily’s cooperation had been good but mentioned frankly that the weakness of the Government had prevented it from taking leadership in Miajlis to see that essential legislation was passed. Prime Minister replied that Iran is now a democratic country so that criticism in Majlis must be expected. Millspaugh agreed that criticism was unavoidable and even desirable but said it should be constructive and not for purpose of obstruction. Prime Minister admitted frankly that the Deputies are at present playing politics in order to seek reelection.
Prime Minister then stated clearly that in his opinion Millspaugh Mission should withdraw resignation for following three reasons: [Page 544] (1) Iran is in great need of American assistance and has adopted a policy of drawing ever closer to United States; (2) it would be in the long range interests of the United States to have American advisers in Iran; and (3) it would be in Millspaugh’s interest to continue since if he withdraws now the memory of his great services to Iran might be destroyed and people would say he withdrew because he had failed. Millspaugh replied that he was unable to comply with the request to withdraw resignation in view of the futility of bargaining with the Majlis in a completely uncooperative mood. The Prime Minister requested him to withdraw the effective date of the resignation but this Millspaugh refused to do since this would be equivalent to withdrawing resignation.
The Prime Minister then stated he had no alternative but to present the resignations to the Council of Ministers Saturday and to a secret mission [session] of the Majlis on Sunday. He hoped to be able to find a compromise solution since the only other two alternatives were to dissolve the Majlis, which was hardly wise since it has only 35 days to run, or to offer his own resignation. When asked whether the new Majlis might be expected to come into being soon after expiration of present one Prime Minister stated elections were not completed but that he hoped this would be the case. He was however vague and uncertain. When asked whether the three pending bills might pass the Majlis soon the Prime Minister stated he saw no reason why the 60 man project and the 400 million rial appropriation would not pass but the passage of the income tax bill before expiration of present Majlis was doubtful.
Prime Minister in closing asked Millspaugh to adopt a more flexible attitude toward Iranian suggestions instead of his present intransigent one. He said, for example, that Millspaugh should give in on the question of refusing to issue individual permits for bringing grain to the cities, a subject on which the Majlis is especially bitter. Millspaugh explained that this was a matter of principle; he could hardly allow the rich to fill their bins when the needs of the common people had not been assured. This he said in addition to the income tax bill showed how the Deputies are playing their own game to the detriment of the country. Millspaugh stated he does not wish to be intransigent; to prove this and also to show his desire to do everything possible in the bread situation he proposed to ask Soheily to appoint Moshar Raf Naficy or some other important Iranian to post of Head of Cereals Section of Finance Ministry, with full authority and promise that his advice would be accepted. Prime Minister seemed pleased at this idea and suggested it be carried out.
[Page 545]Prime Minister was disappointed that resignations were not withdrawn but I believe he received the hint that they might be if the Majlis were to assume a more cooperative attitude and pass some of the pending legislation. I am somewhat hopeful that a compromise may be reached. There has as yet been no press, official [or?] private reaction to the resignations. I will report further developments promptly.