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clearer picture of the Iranian position than before. It was agreed that in a few days Mr. Amerie would come in to discuss possible items for inclusion in the list of products for publication in the event public notice of intention to negotiate with Iran should be issued.

611.9131/141 : Telegram

The Minister in Iran (Dreyfus) to the Secretary of State

30

TEHRAN, April 1, 1941–3 p. m.

[Received April 2–6:50 a. m.] 21. Reference Department's telegram No. 119, November 19; and Legation's despatch No. 8, December 23.31 Prime Minister and Acting Foreign Minister 32 are pressing me for information as to Department's attitude concerning the commercial agreement. They state that Iran is anxious to go ahead with negotiations and is willing to bind itself to purchase 15 to 20 million dollars worth of American goods during next few years.

It seems clear that their anxiety to complete the agreement is based on hope that they will be able to obtain from the United States much needed goods which they are finding it increasingly difficult to obtain from Europe.

I should appreciate an indication of the Department's opinion as soon as its study is completed.

DREYFUS

611.9181/143 Memorandum of Conversation, by Mr. Cecil T. White of the Division

of Commercial Policy and Agreements

[WASHINGTON,] April 10, 1941. Participants: The Iranian Minister;

The Iranian Trade Representative (Mr. Amerie);
Mr. Hawkins; 33

Mr. White. After a brief review of previous discussions regarding the proposed trade agreement between the United States and Iran, the Minister said that he and Mr. Amerie had called to ask whether the draft agreement submitted on September 3, 1940 34 would be acceptable to this Government.

30 Foreign Relations, 1940, vol. III, p. 689.
31 Not printed.
32 Ali Mansur and Djevad Amery, respectively.

Harry Hawkins, Chief of the Division of Commercial Policy and Agreements. 34 See footnote 29, p. 367.

33

In reply, Mr. Hawkins explained that certain parts of the Iranian proposal are not acceptable, particularly the general exception permitting discrimination in favor of Germany and Soviet Russia with which countries Iran has clearing agreements. He went on to say that the trade-agreements organization has been studying the difficulties presented by the Iranian requirements with a view to finding a formula which would meet the necessities of the Iranian Government and still be acceptable to us. Also, studies are being made regarding possible schedule items and soon we would be able to present these data to the Trade Agreements Committee for its consideration. He pointed out in this connection that announcement of public notice of intention to negotiate might be expedited if we could receive the Iranian request list.

In reply to a question by the Minister regarding the time a reply could be expected, Mr. Hawkins indicated that although he could not give a precise date he thought it would be a matter of weeks and not of months. He went on to say that the work on general provisions is far advanced and, in fact, a set of draft provisions had been prepared in the Division which he felt would be acceptable to the Iranian Government. The Minister requested and was given a copy of the draft 35 (marked "Tentative and Unofficial”). Mr. Hawkins stated that the draft as yet had not been considered by the trade-agreements organization and is subject to change.

The Minister wished to know in what respects the draft just given him differed from the Iranian draft of September 3, 1940. Mr. Hawkins pointed out that the provisions in the Iranian draft were very detailed and comprehensive in character and that they provided for certain automatic responses to certain stipulated conditions; because of the specific character of these provisions, the Iranian Government had felt it necessary to include certain reservations, which would be difficult for us to accept. We had attempted to avoid the necessity for such reservations by drawing up a very short agreement, loosely drawn and general in nature, in which the objectives of the agreement would be stated, but the operation of which would be worked out between the two Governments when specific problems should arise. Mr. Hawkins noted that the exchange article merely required that exchange controls should not be operated so as to divert trade from the other contracting country and that the monopoly article called only for fair and equitable treatment. He then called attention to the consultation and termination article and pointed out that under it specific problems would be dealt with as they arose. He expressed the belief that the termination clause is not in practice

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likely to be invoked, since it would be to the interest of both parties to work out problems arising under the agreement rather than have the agreement terminated, with the consequent loss of the advantages provided for therein.

The Minister and Mr. Amerie indicated that, in their opinion, if a proposal along the lines of our tentative draft should be made, it would be acceptable to their Government.

611.9131/141: Telegram

The Secretary of State to the Minister in Iran (Dreyfus)

WASHINGTON, April 11, 1941–6 p. m. 17. Your 21, April 1, 3 p. m. The Department in conjunction with other interested agencies of the Government is endeavoring to expedite its studies in connection with the proposed trade agreement. Meanwhile, it would be helpful if the Department could receive at an early date the list of items which the Iranian Government would wish included in the list of products for publication in the event public notice of intention to negotiate with Iran should be issued. It is understood that the recommendations of the Iranian Trade Representative in that regard have been transmitted to Tehran for the consideration of his Government.

Memorandum of a conversation of April 10 36 with the Iranian Minister is being transmitted to the Legation.

HULL

611.9131/147

The Minister in Iran (Dreyfus) to the Secretary of State

No. 62

TEHRAN, April 26, 1941.

[Received July 2.] Sir:I have the honor to refer to the Legation's telegram No. 33 of April 26, 1941,37 informing the Department that a list of products which Iran wishes to have included in the list of products to be published in case public notice is given of intention to negotiate a trade agreement was being forwarded by pouch and air. There is now enclosed a translation of a Note dated April 24, 1941,

а from the Ministry of Foreign Affairs, which gives a list of items which the Iranian Government desires to have included. Respectfully yours,

Louis G. DREYFUS, JR.

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[Enclosure-Translation]

The Iranian Acting Minister for Foreign Affairs (Amery) to the

American Minister (Dreyfus)

a

No. 539

[TEHRAN,] April 24, 1941. MR. MINISTER: In reply to your Note No. 58 dated April 18, 1941, I have the honor to transmit herewith a list of merchandise exported to the United States during the last twenty years, and necessarily to explain that the Imperial authorities concerned are of the opinion that in case the American Government should accord these commodities privileges and facilities, the amount of their export to the United States would increase and the commercial relations between the two countries would be enhanced.

A copy of this list has also been sent to the Imperial Legation in Washington. I avail myself [etc.] In place of the Minister of Foreign Affairs:

DJEVAD AMERY

[Subenclosure-Translation] LIST OF MERCHANDISE EXPORTED FROM IRAN TO AMERICA DURING THE

LAST [TWENTY] YEARS 1. Rugs and carpets 2. Animal casings

3. Dried fruits, pistachio nuts, almonds and shelled almonds, walnuts and shelled walnuts, kernels of nuts, dates and quince seeds

4. Various skins and leathers, soft skins (furs) for clothing, raw skins, tanned skins, sheep and goat leather

5. Gum tragacanth, gum of wild almond, cherry tree gum, gum arabic and other gums

6. Oxide of iron
7. Kalamkar (printed calico)
8. Silk cloth, raw silk and coarse silk
9. Asafetida
10. Opium

11. Earthenware, chinaware, and imitation chinaware, antiquities, objects of art and (objects) for collection, postage stamps, mosaic articles, engraved silverware and brassware, niello work or simple.

12. Tobacco, cigars and cigarettes
13. Raw wool
14. Turquoise

891.248/123 Memorandum of Telephone Conversation, by Mr. Cecil T. White of

the Division of Commercial Policy and Agreements

[WASHINGTON,] April 28, 1941. Mr. Davallou 38 telephoned to inquire further as to when the Legation could expect a reply to its draft proposal of September 3, 1940. Mr. Davallou indicated that Tehran is anxious to receive our reply as soon as possible.

Mr. Davallou was informed that the Department is trying to expedite its reply and that we expect it will be ready soon. In the course of the conversation his attention was called to the pressure of defense work on the personnel of certain agencies in the trade-agreements organization. I repeated the substance of telegram no. 33, April 26, 1941, from Tehran,39 which reported that the Iranian request list has been supplied by the Foreign Office and is being forwarded to the Department by air mail. I assured Mr. Davallou that its receipt would be very helpful and pointed out that announcement of intention to negotiate might be expedited thereby.

Mr. Davallou wished to know whether we would delay our reply until after we received the request list. In reply, I indicated the belief that we would not.

A short while after the conclusion of the conversation, Mr. Davallou called back to say that the Minister wished to express his appreciation of our efforts in this regard.

The report of the Country Committee on Iran was delayed in the first instance in order to obtain needed information from Tehran. That information has been received, but recently the representatives on the Country Committee from the Department of Commerce and the Tariff Commission have been prevented from completing their studies, in part, because of the reorganization in the Department of Commerce, and, in part, because of assignment to defense work.

However, the Chairman of the Committee has been informed that preliminary work probably will be completed by about May 7 and it is expected that a report can be made to the Trade Agreements Committee in the near future.

* H. Hadjeb-Davallou, First Secretary of the Iranian Legation.

Not printed.

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