690D.116/2: Telegram

The Consul General at Beirut (Palmer) to the Secretary of State

7. Following categorical orders from Paris on January 15 as reported in my telegram No. 4 dated January 18.

All requests for dollar exchange are being refused. Socony Vacuum Oil Company commitments for stocks already in country exceed $1,500,000. Local Socony manager reports reasonably satisfactory but still unconfirmed assurances of favorable action by High Commission on these existing commitments but High Commission has warned him that future shipments of oil payable in dollars will not be permitted without authorization from Paris. He states that no sterling or franc oil is immediately available for this market.

Inasmuch as High Commission is without authority to take action in response to local representations this telegram is being sent also to the American Embassy at Paris but suggestions for the guidance of this office would be appreciated.