Foreign Relations of the United States, 1969–1976, Volume XXXVII, Energy Crisis, 1974–1980

247. Telegram From the Embassy in the United Kingdom to the Department of State and the Department of Energy¹

London, November 30, 1979, 2220Z.

23874. Pass Iran Working Group. Subject: Iran Oil Reporting from London. Ref: (A) State 299840, (B) London 22119.²

1. Confidential—entire text.

2. Iran Oil Sitreps from London³ have contained extensive data collected directly from Iran by long distance telephone conversations between Embassy Tehran Petroleum Officer and his established contacts in Iran. Some of the latter are located in the oil-producing regions far from Tehran.

3. Data being collected by this direct link include daily production and export figures; information on the physical state of oil facilities, the organizational state of the National Iranian Oil Company, progress in construction projects, labor-management relations, product prices; and items of attendant politico-economic interest.

4. Embassy London has supplemented the above reports with information from some of the same sources we used last winter during the interruption in communications between Tehran and Iran’s oil regions: BP, Shell, and other oil company London offices. However, with the old Iranian oil participants consortium now largely defunct, and with few foreigners now travelling to Iran, our own access to data is not what it once was. Most of the data in the Sitreps has been provided by Petroleum Officer Tehran’s daily telephone calls.

5. With Iranian events unpredictable, one cannot say how long the direct telephone channel will last. To the extent that it does, it seems to be unusable except through established personal rapport: some of the contacts in Iran are already uneasy about using the channel—even with someone whom they know.

6. If EB/FSE, the Department of Energy, and other Washington agencies find this direct connection to be of value, as we do, they should contact PER/FCA and NEA/EX to pursue some arrangement on Tehran Petroleum Officer’s London TDY (which currently expires January 2) to ensure that it is not curtailed precipitately.⁴ It should be pointed out that given the heavy ongoing energy workload, we are also able to make good overall use of this TDY resource.⁵

Brewster

1. Source: National Archives, RG 59, Central Foreign Policy Files, D790556–0628. Confidential.
2. In telegram 299840 to London, November 18, the Department authorized travel for the Petroleum Officer at the Embassy in Tehran, Andrew Grossman, from Tehran to London for 60 days, starting November 4. (Ibid., D790530–0416) Telegram 22119 from London, November 8, informed the Department that Grossman was “in safe haven from Tehran” and had been assisting “in reporting on Iranian economic issues, including regular reports on oil production and export.” It added: “In view of the heavy load of work resulting from Iranian crisis, and Grossman’s ability to reach his contacts in Tehran, Kharg and Ahwaz by phone from London, Embassy requests that Grossman be assigned TDY to London until Embassy Tehran can reopen for business.” (Ibid., D790515–0185)
3. The first Iran Oil Sitrep was telegram 22008 from London, November 7. (Ibid., D790513–0136) Beginning with telegram 22365 from London, November 10, which was “Iran Oil Sitrep No. 11,” all of the reporting on Iran’s oil industry from London had the subject heading, “Iran Oil Sitrep,” followed by a number and a date. (Ibid., D790518–0666)
4. On December 11, the Department informed the Embassy in London that, while it “appreciated” Grossman’s reporting, it believed that “his TDY assignment should be curtailed as of January 30.” (Telegram 319717 to London; ibid., D790571–0327) Upon the imminent reassignment of Grossman, the Ambassador wrote to the Department on January 25, 1980: “I find it difficult to believe that Washington is prepared to sever this established direct link to Iran at a time when American journalists have just been expelled from Iran and when events near the Persian Gulf are the focus of the world—and Presidential—attention.” He concluded: “We will obviously accept whatever decision comes out from Washington. However, in view of the above considerations, I believe senior officials in Washington should carefully review the decision to terminate his assignment here next week.” (Telegram 1840 from London; ibid., [no film number])
5. The final Iran Oil Sitrep from London, No. 69, February 2, 1980, was telegram 2481. (Ibid., D800058–0469) The Department assigned Grossman to the Embassy in Paris as a commercial officer, where he continued, with the Department’s approval, “his telephone contact work and reporting out of Paris.” Because the Department “and other interested agencies” found the Iran Sitreps “valuable in helping Washington understand current developments in Iranian oil sector and general economy,” it instructed the Embassy in Paris to tailor Grossman’s duties “to allow him to include reporting on conditions in Iran until hostage crisis is resolved.” (Telegram 29929 to London and Paris, February 3; ibid., D800059–0691) The first Iran Oil Sitrep from Paris was telegram 4055, February 5, but beginning with telegram 5684 from London, March 14, the reports came exclusively from London. (Ibid., D800063–0233, D800131–0146) The last Iran Oil Sitrep—at least under that subject heading—was telegram 19807 from London, September 17, 1980. (Ibid., D800447–0495)