800.6363/9–2745
The Ambassador in the United Kingdom ( Winant ) to the Secretary of State
[Received October 16.]
Sir: I have the honor to report the following matters of interest regarding petroleum which were touched upon by Sir Norman Duke, Secretary of the Petroleum Division of the Ministry of Fuel and Power, during a conversation on September 26th, two days after the conclusion of the petroleum negotiations with the signing of the revised petroleum agreement.
[Page 57]Sir Norman referred to American participation in Middle Eastern petroleum development. He said first that he could not see how American interests could be admitted to a share in concessions already held by British interests in the Middle East, but went on to indicate the view that it would be desirable if American interests were to obtain additional concessions in non-concessioned areas in the Middle East. In this connection, he said that possibly an arrangement could be made between the Shell Group and American interests concerning Southern Iran. He added, however, that the Shell group would not be happy if they were told to make such an arrangement since, before the Iranian Government had decided not to grant any new concessions at this time in Iran,19 Shell had felt that its chances to secure a concession in Southern Iran were good.
[Here follows discussion on petroleum questions in Latin America.]
Sir Norman spoke of the British Government’s participation in the Anglo-Iranian Oil Company. He said that he felt that the British Government’s direct ownership of a majority of that company has sometimes been a disadvantage. He referred again to the negotiations of last year in Iran, and said that when the Iranians had informed the Russian officials that they did not wish to deal on a government to government basis regarding a concession, the Russian officials had pointed to the British Government’s ownership in the Anglo-Iranian Oil Company.
Relative to the general question of the development of Middle Eastern oil, Sir Norman indicated views concerning the utilization of oil from that area which closely parallel, but from the British standpoint, the thinking within the Department on the desirable objectives of United States foreign oil policy, with particular reference to the Middle East. Sir Norman expressed the opinion that Middle Eastern oil should be utilised for economic requirements and should not be depended upon by British for strategic purposes.
[Here follows a general discussion on the composition of the Anglo-American Petroleum Commission, called for in the agreement signed on September 24.]
Respectfully yours,
Second Secretary of Embassy
- For documentation on the decision of the Iranian Government to postpone all petroleum development negotiations and on representations by the United States to the Soviet Union regarding unfavorable Soviet reaction, see Foreign Relations, 1944, vol. v, pp. 445 ff.↩