Foreign Relations of the United States, 1946, The Near East and Africa, Volume VII

867N.6363/3–2746: Telegram

The Acting Secretary of State to the Chargé in the United Kingdom (Gallman)

secret

Washington, April 2, 1946—7 p.m.

2858. Dept approves approach to FonOff in sense of numbered para 5 urtel 3470 Mar 27.¹⁵ Aramco has been advised that in opinion of Emb and Dept prospects are good for mutually satisfactory completion of negotiations at Amman. Dept commends Emb and Hare for skillful handling this negotiation during Emir’s visit London.¹⁶

Acheson

[Mr. Loftus gave an address on “Oil in United States Foreign Policy” at the University of Pittsburgh on July 30. He cited various activities of the United States with respect to foreign oil operations prior to World War II, as follows:

• “1. Insistence upon nondiscriminatory commercial treatment of American oil marketers operating in foreign countries.
• 2. Insistence upon the ‘open door’ principle of equal commercial opportunity (most-favored-nation treatment) with respect to the granting of rights to explore for and develop oil reserves.
• 3. Insistence on the principle of just and adequate compensation in circumstances where a foreign government exercises its sovereign right to nationalize the oil industry.
• 4. Diplomatic assistance to and support of American oil companies in their various dealings with foreign governments, when requested, such assistance and support being more or less routine, depending on the circumstances.”

Mr. Loftus also set forth two goals of United States foreign policy, as they affected Middle East oil: “To promote the development of oil potentialities in the Eastern Hemisphere, particularly in the oil-rich areas of the Middle East—so that the expanding requirements of Europe and Asia for petroleum products can be met from Eastern Hemisphere production without that drain upon Western Hemisphere reserves which has characterized the pattern of world trade in the past”, and “To facilitate and encourage within reason the participation of American capital and enterprise in the development of Eastern Hemisphere resources.”

Excerpts of Mr. Loftus’ address are printed in Department of State Bulletin, August 11, 1946, page 276.]

15. Not printed; this paragraph stated: “Finally, regarding Lenahan’s suggestion that Dept ask FonOff to issue detailed instructions to Kirkbride, it would seem that, while Lenahan’s anxiety to attain maximum clarification and support may be understandable, situation might adequately be met by less peremptory approach taking cognizance of progress made here and expressing hope that matter will be of continuing concern to British authorities now that scene of negotiation being transferred to Amman. (867N.6363/3–2746)
16. In accordance with Department’s telegram 2858, Mr. Gallman discussed the pipeline question with Sir Robert G. Howe, Superintending Under-Secretary for the Eastern Department of the British Foreign Office, on April 8. It was Sir Robert’s understanding that appropriate instructions had been sent to Amman to ensure that negotiations would not bog down again, but if such instructions had not gone forward, they would be sent without delay. Sir Robert was said to be “unequivocal in reiterating that British Govt regarded pipeline project as of direct interest and definitely wished to cooperate in bringing negotiations to successful termination.” (Telegram 3926, April 9, 9 p.m., from London, 867N.6363/4–946)