NOT FOR PUBLICATION, BROADCAST, TRANSMISSION ABROAD IN ANY FORM OR USE ON CLUB OR AGENCY TAPES BEFORE 1330 HOURS B.S.T. on AUGUST 5th, 1954

Text of statement to be issued in Tehran by H.B.M. Embassy and the Persian Government at 1330 Hours B.S.T. on August 5

(Note: The original text of this statement is the one being issued in Tehran. The following text is made available in London for the convenience of correspondents).

Her Majesty’s Government and the Iranian Government have reached general agreement in principle on arrangements which will govern payment relations between Iran and the sterling area, and which will come into force on the ratification of the oil agreement with the consortium.

Under the payment arrangements, all transactions, including those of the Consortium with Iran and the National Iranian Oil Company (N.I.O.C.) shall normally be settled in sterling and Her Majesty’s Government will take the necessary steps to give Iran full “transferable account” facilities. Her Majesty’s Government have also undertaken to provide Iran with facilities for converting sterling into dollars.

While these arrangements will have to await ratification of the oil agreement, Her Majesty’s Government have undertaken, as a special measure, to remove with immediate effect, certain restrictions on sterling payments between Persia and the non-dollar world.

5 August 1954

News Department
FOREIGN OFFICE.

311. Following is text joint Iranian-British statement being released Tehran August 5 on payments:

“Her Majesty’s Government and Iranian Government have reached general agreement in principle¹ on arrangements which will govern payments relations between Iran and sterling area, and which will come into force on ratification oil agreement with consortium.

2. Under payments arrangements, all transactions, including those of consortium with Iran and NIOC shall normally be settled in sterling and Her Majesty’s Government will take necessary steps to give Iran full ‘transferable account’ facilities. Her Majesty’s Government have also undertaken provide Iran with facilities for converting sterling into dollars.

3. While these arrangements will have await ratification oil agreement, Her Majesty’s Government have undertaken as special measure to remove, with immediate effect, certain restrictions existing on sterling payments between Iran and non-dollar world”.

HENDERSON