891.6363/807: Telegram
The Secretary of State to the Minister in Iran (Dreyfus)
584. Standard Vacuum Oil Company has communicated with the Department in regard to its desire to send representatives to Tehran to negotiate with the Iranian Government regarding an arrangement with that Government to search for and produce petroleum in Iran, your cable 1065, November 15, and has requested the views [Page 626] of the Department. In a letter dated November 17 the Department advised the Standard Vacuum Oil Company that, because of the importance of petroleum, both from the long-range viewpoint and for war purposes, the Department looks with favor upon the development of all possible sources of petroleum. The Department advised that it is glad to see American companies take part in the development of these sources and in line with this view perceives no objection to the Standard Vacuum Oil Company undertaking negotiations with the Government of Iran regarding production and exploration. It was requested that prior to the conclusion of any arrangement with the Government of Iran, that Standard Vacuum advise the Department of the terms of any proposed arrangement.