Ext 5000/41(1) 'Persia: situation leading up to, and after, the Allied occupation' [‎260r] (519/606)

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SECRET 7
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From
Dated
Received
IMPORTANT.
3690.
DECYPHER OF T E L E G R A M.
mi,
Government of* India* External Affaire Departmex
to Secretary of State for India.
Simla. 21„55 hoursy 20th July ? X94i.
22.15 hours y 20th July ? 1941..
XXX
Addressed Secretary of State for India y London»
repeated to Minister at Tehran^ Ambassador at Cairo for Minis! r
of State CairOj Ambassador at Moscow. Foreign Office t Ilf eT‘am
Ro.. 383 to Tehran dated July 15t h,.- “
We are in full agreement with implied expectation tha1
policy outlined in Foreign Office i e^r^n-, nil (y p; n ; r -n.
to secure the elimination of German influence in Iran^ and w
it would be well to indicate immediately the lines on which guv
minds are moving in regard to the next phase, viz h"' anrl leaf or
of economic pressure.
There are certain fundamental factors which must nor
be ignor Q d ana of these the most, important as we s-^ th c *m are as
follows;
(1) (a) (V potential) military commitments imst !-
limited to essentia3.s.
(d) These are protection of Atadan and o1)fiei h
with possible addition of Bushire.
(c) Both to offset enemy propaganda dij-ecte < to
neutral and possibly to Shia Muslim (? opinion) (though we are
not impressed by evidence of (? Shia) solidarity)* and to avoid
encouragement of Russiaxt occupation of Northern Provinces we nrust
be in position to represent such military action as defence >f ou
vital interests against German directed or inspirea aggr ssion.
(2) (a) There are widespread poverty ana nea
starvation throughout Iran,. Reports from many sources suggest
that serious disorder or even insurrection against Shah dictates
regime may be imminent.
^ (b ) Shah’s policy of Industx* 1 alisation and
modernisation' have (apart from his insatiable greed for property)
r-een mainly responsible for (? impov iish)rient of country and export
of reserves of foodstuffs in return for technical equipment
largely of German origin.
(3) (a) There is widespread belief that British wer-
responsible for elevation of Reza Shah and are still his main
support. It is of primary importance that we should take all
possible steps to divest ourselves of odium attaching to this
Imaginary association and to pass it to Germans who have made use
of Shah's craze for industrialisation to achieve their present
position,
(b) As corollary^ if Reza Shah .were de posed he
would be to uc dangerously unwelcome refugee (it must
be remembered that he has behind him no fmotion of tradition).
RICd. POL. DEPt
22 JUL 941
INDIA OFRCE
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