890g.6363 T 84/43: Telegram
The Ambassador in Great Britain (Harvey) to the Secretary of State
[Received August 4—3:05 p.m.]
339. In the matter of participation in the Turkish Petroleum Co., I am
informed by Teagle,62 who is
returning to the United States tomorrow, that no agreement has been
reached. … Pineau, chief of the French Government’s petroleum
department, and representing French interests, has unexpectedly
displayed sympathy with [Page 340] the
American view. Following a conversation which he had had with
Pineau presented Teagle with a memorandum and asked that it be brought
informally, to your attention. The memorandum reads as follows:65
Pineau stated also that the French Government’s views as set forth in the above memorandum had been communicated to the British Government. Paragraph (2) above is to be explained by the fact that from all oil produced under the agreement the Government of Iraq may collect a royalty. It is the desire of the French, therefore, that the Syrian Government shall have a similar privilege of levying a small transit tax on Mosul oil passing through Syria to Alexandretta by the proposed pipe line.
After private discussions between the present partners in Turkish Petroleum it was decided to offer the American interests a 12% participation. Naturally the offer appeared entirely too low to Mr. Teagle and there was a rupture of official negotiations.
. . . . . . . . . . . . . .