Evening star., 1951-09-19
Grady Leaves 1eheran
For u. ). 10 Retire
From Diplomatic Life
BY the Associated Press

IEHERAN, iran, Sept. ~
Henry F. Grady. American Am
bassador to Iran, left Teheran
today to retire from diplomatic
life after serving a frustrating
I141a months in this turbulent
country on Russia's southern bor-
der.
AS the white haired envoy and
Mrs. Grady boarded their plane,
the airport loudspeaker system
blared out recording of Bing
Crosby grooming Thanks"
1t may have been a subtle bit
of Persian sarcasm for Mr.. Grady
who spent a million dollars a day
helping save Greece from COM
munism and came to Iran hoping
to set up an American economic
assistance program here.
Through no fault of his, he left
with the $25 million American
loan still tangled in red tape ano
the country on economic rocks
because of oil naturalization.
Henderson Successor.
Mr.. Grady's successor is 10y
Henderson, who is arriving in q
few days from his former post in
India. Mr.. Henderson faces the
job of restoring American prestige
and influence in this strategic
mideastern country.
Mr.. Grady plans to return to
private life in the United States
En- route back, he will stop at
Athens, where he served before
coming to Teheran in July, 1850
and at Frankfurt.
He is leaving Iran fatigued and
somewhat bitter at the State De-
partment and President Truman
for sending him into retirement
in the midst of the oil crisis in
which he tried to bring the British
and the IranianS together.
The official Washington story is
that Mr.. Grady was sent here
only for a year to get the eco
Inomic program started, and that
he is being relieved because his
year is up.
But Mr.. Grady has been critical
of the State Departments han
ding of Trans problem of eco-
nomics and oil.
He failed in his attempt to get
United States pressure on the
British to meet some Iranian de-
mands for a bigger share of oil
profits before the naturalization
law passed. The pressure come
too late.
Mr.. Grady also fought for
speeded-up economic assistance to
provide another weapon against
the Communists in Iran. The
Export-Import Bank loan is still
Istymied.
Mr.. Grady made official fare
wells to the Premier and to the
Shah. But not single high
official of the government was
lpresent at the airport to see him
Ioff.
Cabinet Being Reshuffled.
Behind him, he left the Iranian
cabinet in the throes of a shake
up as Premier Mohammed MosSa- =
degh prepared to fight through
his showdown with the British
over oil properties and receipts.
Reports here were that the
Shah, after talks with DR.. Moss
adegh. gave him the word to go
ahead.
Ofhcials say Iran will begin talks
with Russia soon about renewing
a barter agreement on sugar, steel
and cotton goods for rice and raw
cotton. The year-old agreement
expires in November.
But Iran has Jagged in shipping
her products and Russian ship
ments have been correspondingly
low.
The government served its order
today on the British Bank of Iran
and the Middle East. forbidding
foreign exchange dealings.
British diplomatic sources said
the action put the possibility Of
oil settlement even farther off.
One British official said the
bank will continue operations. but
at a loss. Six British insurance
companies ceased operations at
least temporarily as a result of
the new restriction.