890g.6363 T 84/233

The French Embassy to the Department of State

The French Government is informed that difficulties have arisen between the French and British Groups on one part and the American Group on the other, which are parts of the Turkish Petroleum Company, concerning the interpretation of the “heads of agreement” agreed upon between them last March and inserted into a final contract.

The American Group is threatening to withdraw and to negotiate by itself with the Turkish interests.

The British and French Governments are proposing that the question should be settled by arbitration. Such a procedure would be entrusted with four experts who would have to decide upon the interpretation to be given to the Convention. Should the experts not reach an agreement, they would designate one sur-arbiter and the contract drawn by them would engage all the interested parties.

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The French Government would deeply appreciate any steps which the American Government could take in order to induce the American Group to give its consent to the proposed procedure.

It is needless to insist upon the serious inconveniences of all kinds which, in the present circumstances, the retirement and an isolated action of the American Group could have.