Foreign Relations of the United States: Diplomatic Papers, 1944, The Near East, South Asia, and Africa, The Far East, Volume V

891.6363/834: Telegram

The Secretary of State to the Chargé in Iran (Ford)

Washington, April 4, 1944—7 p.m.

207. Messrs. William Campbell and Walter Wilson will arrive at Tehran about April 3 or 4. They are representing Mr. Marcel E. Wagner (American Eastern Corporation) who is acting for Sinclair interests.⁵⁸ We have discussed with Mr. Wagner the possibility that the entry of another American company in the Iranian oil negotiations might jeopardize the overall American interest. Wagner indicated he would discuss this with Mr. Sinclair. However, Wagner is of the opinion (1) that Iranian concession will not be granted to Standard-Vacuum interests in any case because the Iranians consider Standard-Vacuum to be tied too closely to the British Anglo-Iranian interests,⁵⁹ and (2) because of the foregoing the chances of the Sinclair group to secure a concession would be jeopardized by any merger of forces with the Standard-Vacuum group, and (3) the Sinclair interests will be diligent in developing any concession rights obtained. The foregoing is for your confidential information and we would like your comments thereon.

We made it clear to Mr. Wagner and his associates that the Department and the Legation at Tehran would take an identical attitude toward the Sinclair and Standard-Vacuum negotiations and toward the representatives of the two companies, and that any appropriate assistance rendered by this Government would be given equally to any American enterprise seeking foreign concessions. You should therefore deal accordingly with the Sinclair and Standard-Vacuum representatives and with the Iranian authorities.

We have requested Wagner to keep both you and the Department fully advised concerning any discussions or developments.

You should make both companies feel that they can discuss any matter with you on a confidential basis. Therefore, you should not divulge to either company information given you by the other where such disclosure might be to the disadvantage of the latter. You may, of course, in your discretion, give either company such information as you may obtain from any source which you feel would be of assistance to the American companies impartially.

The above information is in reply to your 214 of March 27.⁶⁰

Hull

58. The Sinclair Oil Company.
59. The Anglo-Iranian Oil Company.
60. Not printed; the Chargé had voiced concern at the entrance of a second American oil company (Sinclair) into the concession picture, fearing the position of both would be weakened, and had suggested that the Department consider urging the two companies either to combine to share a concession or for one to withdraw (891.6363/834).