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TIME magazine — September 14, 1953

The Mossadegh Project | November 4, 2013                     

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Emergency Grant

TIME magazine, September 14, 1953

To President Eisenhower went a personal plea from Iran’s new Premier, Fazlollah Zahedi: “Iran needs immediate financial aid to enable it to emerge from a state of economic chaos.” Back went the President’s reply: “We stand ready to assist you.” Early one night last week, U.S. Ambassador Loy Henderson trudged the stairs to the third floor of Iran’s rambling Foreign Office, where Premier Zahedi and his Cabinet awaited him, to keep his Government’s promise. He handed over a second letter from Ike, which tendered $45 million in emergency aid to Iran.

It was more than some U.S. diplomats had believed could be scraped together without new authority from Congress, less than many Iranians had hoped for. The Iranians felt that they needed at least $300 million right away to get the wheels of the nation’s industry turning again. The new grant actually brought the total of impending U.S. aid to some $98 million. In addition to the $45 million, Zahedi's government will get $23.4 million in Point Four aid (including $10 million cut for “economy reasons” before Mossadegh fell and now restored) plus some $30 million in U.S. military assistance.

Smartly guided by veteran Diplomat Henderson, the U.S. acted with surprising speed—only 17 days after the anti-Mossadegh coup—and wisely attached no tight strings to its gift. But President Eisenhower’s letter did suggest “an early effective use of Iran's rich resources”— a polite way of saying that further aid might depend on Iran’s willingness to settle its oil dispute with Britain and get its important resource, the Abadan refineries, back into business. Premier Zahedi seemed to understand. “In the near future,” said he, “we should be able to begin to make maximum use of our national resources.”

Divvying Up the Loot: The Iran Oil Consortium Agreement of 1954
Divvying Up the Loot: The Iran Oil Consortium Agreement of 


Related links:

Pres. Eisenhower Rejects Mossadegh’s Appeal For Financial Aid | June 29, 1953

Catholic Magazine Urges Immediate Aid To Zahedi Regime | September 4, 1953

Costly Stubbornness | The Morning Herald, September 12, 1954

MOSSADEGH t-shirts — “If I sit silently, I have sinned”

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