VKP(b) CC Decree, 'Concerning Instructions to Cdes. Sadchikov and Chechulin Concerning the Issue of the Settlement of the Mutual Financial Claims with Iran'

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VKP(b) CC DECREE

Concerning instructions to Cdes. Sadchikov and Chechulin concerning the issue of the settlement of the mutual financial claims with Iran.

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Approve the instructions to Cdes. Sadchikov and Chechulin submitted by the USSR MFA, USSR MF, and USSR MVT concerning the issue of the settlement of the mutual financial claims with Iran (attached).

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TEHRAN   TO THE SOVIET AMBASSADOR

          TO SADCHIKOV, CHECHULIN, and KUZNETSOV

[In reply to] your 817-820.

1. The negotiations have shown that at the present time there are no grounds for counting on achieving agreement with the Iranians on a basis acceptable to us. As regards your reasoning concerning the advisability of some concessions to the Iranian side in a departure from the guidelines given you we consider them to be incorrect and completely unacceptable. We do not plan to make any concessions whatsoever above the ones stipulated in these guidelines.

2. In view of the position taken by the Iranians we consider a continuation of the negotiations inadvisable. However, the discontinuance of the negotiations needs to be done in an appropriately tactful form.

In this regard you need to state to the Iranian representatives that at a time when the Soviet side has done everything possible to treat the wishes of the Iranian side with proper consideration the progress of the negotiations has shown that the Iranian side has not exhibited the same attitude toward the wishes of the Soviet side. In view of this the Soviet side considers it necessary to suspend the negotiations in order to go to Moscow and report to its government about the negotiations which have been held.

You can also say that next [step] will be arranged through diplomatic channels.

3. [You] ought not accept the Iranians' proposals about preparation of a protocol concerning the results of the negotiations. You ought to respond to such a proposal that, inasmuch as the negotiations are not finished, you consider the preparation of such a protocol premature.

4. Do not make any departures from these instructions. All explanations to the Iranians ought to be given in a firm, but calm, manner.

Telegraph when this is done.