US embassy in Tehran in 1979 had no idea about much

How clueless were the Americans in 1979 when looking at the situation in Iran? A Wikileaks released document explains:

PERHAPS THE SINGLE DOMINANT ASPECT OF THE PERSIAN
PSYCHE IS AN OVERRIDING EGOISM. ITS ANTECEDENTS LIE
IN THE LONG IRANIAN HISTORY OF INSTABILITY AND INSECURITY
WHICH PUT A PREMIUM ON SELF-PRESERVATION. THE PRACTICAL
EFFECT OF IT IS AN ALMOST TOTAL PERSIAN PREOCCUPATION
WITH SELF AND LEAVES LITTLE ROOM FOR UNDERSTANDING POINTS
OF VIEW OTHER THAN ONE’S OWN. THUS, FOR EXAMPLE, IT
IS INCOMPREHENSIBLE TO AN IRANIAN THAT U.S. IMMIGRATION
LAW MAY PROHIBIT ISSUING HIM A TOURIST VISA WHEN HE HAS
DETERMINED THAT HE WANTS TO LIVE IN CALIFORNIA.
SIMILARLY, THE IRANIAN CENTRAL BANK SEES NO INCONSISTENCY
IN CLAIMING FORCE MAJEURE TO AVOID PENALTIES FOR LATE
PAYMENT OF INTEREST DUE ON OUTSTANDING LOANS WHILE THE
GOVERNMENT OF WHICH IT IS A PART IS DENYING THE VAILIDITY
OF THE VERY GROUNDS UPON WHICH THE CLAIM IS MADE WHEN
CONFRONTED BY SIMILAR CLAIMS FROM FOREIGN FIRMS FORCED
TO CEASE OPERATIONS DURING THE IRANIAN REVOLUTION.