Office of the Historian

891.6363/860: Telegram

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

Washington, June 27, 1944—8 p.m.

394. Your 432, June 16, 2 p.m. Hoover and Curtice will probably not be able to leave before early July.

We have carefully considered your telegrams numbers 342 of May 16 and 365 of May 24,65 as well as your 432, June 16, and have been keeping in close touch with Wagner, Sinclair and Standard-Vacuum.

With reference to the alternatives suggested in your 342 of May 16 it would be contrary to policy for the Department to insist either that one of the American companies withdraw or that the two companies present a combined bid. Hence we could not adopt either alternative. Both Standard-Vacuum and Sinclair appear confident of securing a concession and we have no indication that either will withdraw or that they will present a combined bid. Sinclair presented a firm proposal to the Iranian Minister here last week, and it has been studied by Hoover and Curtice.

The Department will continue to render impartially all appropriate assistance to American firms desiring to bid for Iranian concessions and you should render similar assistance to their representatives in Iran.

However, the Department would not countenance any activity of a character by an American firm, such as a campaign against a competitor (your 365 of May 24), which would prejudice overall American interests in Iran. As a result of our expression of concern in this regard, Wagner sent the message to Campbell transmitted in our 356 of June 7.66

There has never been any suggestion, in London negotiations or elsewhere, of an agreement with the British to divide foreign areas between ourselves and the British for purposes of seeking petroleum or other concessions, and no such agreement is contemplated. As stated in the Department’s circular telegram of May 8, 10 p.m.,67 the ad referendum agreement with the British resulting from the preliminary oil discussions here68 pledges both Governments to observe the principle of equal opportunity with respect to new concessions. Undue pressure by the British for Shell or by us for an American interest [Page 452] or interests would be inconsistent of course with the agreement on that principle.

Please continue to keep the Department closely informed of developments.

Hull
  1. Telegram No. 365 not printed.↩
  2. Not printed.↩
  3. Vol. iii, p. 115.↩
  4. For correspondence regarding the oil discussions and unperfected agreement signed August 8, 1944, see ibid., pp. 94 ff.↩