851.6363/6–145: Telegram
The Acting Secretary of State to the Ambassador in France ( Caffery )
2598. Believe line Embassy should take in reply to French is that request for membership on allocation committee is being considered in light of facts presented but that this question is one of such broad policy that it cannot be settled before the petroleum supply arrangement must come into operation (reurtels 2654, May 15; 2943, May 24; 3182, June 19).
The French apparently have recognized this in presenting their requirements as submitted in your 3184, June 1.8
U.S. members of CCAC10 are proposing to CCAC that military responsibility for provision and distribution of petroleum products for civilian use be terminated September 1 for both bulk and packaged products in France, Belgium, Holland, Luxemburg, Denmark, and Norway, and it is believed SHAEF will agree. As September 1 is termination date in the theater, preparation must be made to load products for civil account on assumption September 1 will officially be established as changeover date. Assume this date satisfactory on that side. Will confirm it as soon as possible. Urgent that French complete all steps necessary for supply arrangement to begin functioning without further delay, including any action which might be required to place local pool organization on an operating basis. Having presented their requirements, the French should be willing, with whatever reservations they feel they must make, to take any remaining steps necessary to this end since they have not questioned the procedures or the machinery contemplated by the supply arrangement. Please advise name and address of local pool committee with which supply committees in New York and London will communicate.
In establishing French import requirements of petroleum products for last four months 1945 following data will be required unless already [Page 780] sent airmail with requirements program mentioned in your 3164 [3184?]:
- (1)
- Stocks in hands of groupment or other large holders as of September 1.
- (2)
- SHAEF stocks to be turned over September 1.
- (3)
- SHAEF stocks in transit September 1 for civil account.
- (4)
- Product yields from Iraq crude to be imported.
- (5)
- Indigenous supply of products or substitutes.
As this message indicates, Department does not believe that specific answer should be given to French request for membership on allocation committee at this time.
For your consideration relative to the reply which eventually must be made, the Department believes the most valid arguments against it are military security reasons and the fact that the primary function of the committee is to ensure that best use is made of Anglo-American petroleum products while at the same time treating oil consuming countries equitably in regard to their oil requirements. Despite the statements of the French regarding their petroleum resources and facilities the second argument nonetheless holds as France is and will continue a deficit oil country. The French might be informed that we appreciate the reasonableness of their having a voice in what is done with their Iraq crude and that as a matter of fact the agreement which has been reached with them regarding it will of course continue in force. Regarding the military security argument, it probably should be couched in broad terms which convey the thought that the allocation committee will be concerned with coordinating the world petroleum situation with military operations directed by the Combined Chiefs of Staff and therefore its membership is limited to the same Governments. Other arguments given in the Embassy’s Petroleum Report No. 2 dated March 26, 194512 seem less convincing than these, but Embassy’s views and suggestions after discussion with British as to the timing and the type of reply which should be made to the French will be appreciated.
British Embassy will receive similar instructions.