-7- PART III In considering the present status of relations between Iran and the United States it must be remembered that although American troops have been here more than a year their presence has not yet been officially recognized by the Iranian Government. Many Iranian officials believe that American troops are in Iran on the invitation and for the purpose of serving as an instrumentality of Britain. For a year or more we have had under negotiation with Iran a treaty wherein Iran would recognize the presence of American troops as an American operation. The ineffective presentation of the treaty has not been helpful to American prestige with the Iranians. It is the responsibility of the State Department to effect the consummation of the treaty. The necessity for promptness in the negotiation of this agreement was pointed out by me in my report to you of May 13, 1943. I have not personally participated in any of the treaty conferences with the Iranians. I think it important that we understand that since our troops entered Iran on the invitation of the British without advance notice to the Government of Iran, it was natural for the Iranians to look upon us as a British instrumentality. In addition to this The United Kingdom Commercial Corporation which was first engaged in preclusive purchasing in Iran has since been selling American lend lease supplies to civilians and to the Government of Iran. Largely through our lend lease supplies, paid for by the American taxpayer, the United Kingdom Commercial Corporation has been attempt- ing and, to a considerable degree, succeeding in establishing a complete trade monopoly in Iran. The United Kingdom Commercial |