891.51A/890: Telegram
The Chargé in Iran (Ford) to the Secretary of State
[Received 7:17 p.m.]
1053. My 1051, November 8. At personal request of Shah made yesterday afternoon, Millspaugh has agreed that Mission shall continue work today and tomorrow despite fact Majlis has still passed less than half of income tax articles. However, he is issuing press statement, for publication this evening, stating he had resigned effective November 2, had extended time by 1 week at Prime Minister’s request and has now agreed to stay 2 more days at request of Shah. Statement is couched in conciliatory language and does not entirely close door to further postponement even if income tax bill is not passed by tomorrow night. (Passage in that time unlikely though Majlis is now supposed to meet twice daily and Shah has promised his active support.)
[Page 555]I urged on Millspaugh desirability of temporizing in view of Department’s urgent desire that Mission continue plus the fact that Majlis has given some evidence of good faith by devoting its exclusive attention to income tax bill. He feels, however, he is making substantial concession in agreeing that the Mission continue work for 2 days and that his action would be misunderstood unless he published the facts and made it clear that he has not withdrawn his resignation. He may be justified in his belief that Majlis will not bring itself to pass the bill unless it is convinced, by positive action, that it is only way to keep Mission. Both he and I feel bill will go through but there is always the chance Deputies will rebel in the face of an apparent ultimatum. There is no doubt that they are personally opposed to measure, which hits their own pocketbooks, and Prime Minister has apparently failed to implement his assurances of positive support.
Repeated to Cairo for Landis.