891.6363A/3–347: Telegram

The Ambassador in Iran (Allen) to the Secretary of State

top secret
urgent

154. During conversation with Prime Minister this morning, held at his request, Qavam said he felt in need of expert technical advice on petroleum question, especially as regards the northern provinces, and would like to employ a qualified American for this purpose. He asked me to ascertain urgently whether my Govt perceived objection to his doing so. He emphasized that matter should be kept most highly confidential until announced. If Dept does not object, he will immediately instruct Ala to find one. I suspect he may have Hoover and Curtice1 in mind since they are familiar with Iran, but he said he felt that one American expert in Iran would be sufficient.

In reply to my inquiry he said he had in mind an employment contract with a private individual, perhaps along the lines of Dr. [Page 898] Avery’s2 contract, or else a contract such as was made with Hoover and Curtice in 1944. He had little idea how long the expert would be needed.

All he is interested in learning now is whether in principle he can go ahead with the idea.

I believe Qavam desires to reach a petroleum agreement with USSR and at same time defend legitimate Iranian interest and he is inclined to a favor granting a straight concession rather than a mixed company. His wish to employ an American expert is motivated in part by an honest desire for technical help and in part, I feel confident, by desire to have an expert share the responsibility when he attempts to persuade the Soviets to accept a concession rather than the mixed company idea to which Moscow seems much attached. Hoover and Curtice showed clearly when they were here in 1944 that they favored a Soviet concession in Northern Iran, under proper safeguards.

As Dept knows, petroleum is the principal problem before Iranian Govt at the moment and one on which they are most eagerly seeking advice. An American petroleum expert in Iran would almost inevitably involve US in some newspaper controversy. At the same time it would be rather difficult for US to agree that Iran can have 25 American Army Officers as advisors to their army and gendarmerie, and can employ private Americans in their Finance, Health and other Ministries, but cannot buy petroleum advice from the US.

Moreover, we have given Iran certain assurances of assistance. Expert advisors, especially in questions on which countries like Iran seek and need advice greatly, are often the most beneficial type of assistance we can give.

I suggest that I be authorized to inform Qavam that the question of employment of American experts in the petroleum as in other fields, is one entirely for the Iranian Govt to determine. Urgent reply would be appreciated.

Allen
  1. Herbert Hoover, Jr., and A. A. Curtice, petroleum geologists, who had been advisers on petroleum to the Iranian Government; see telegram 316, May 20, 1944, to Tehran, Foreign Relations, 1944, vol. v, p. 450.
  2. Bennett F. Avery, who became adviser on public health to the Iranian Government early in 1944.