891.6363/8–2346: Telegram
The Acting Secretary of State to the Ambassador in Iran (Allen)
709. By informal notes and discussions18 in Dept, Ala19 has proposed establishment international corp under aegis UN to pool and control all oil resources of Iran including AIOC concession. Plan presupposes participation by British, Soviet, Iranian, American, and possibly other interests, preferably by private companies. Ala strongly feels creation such Co would provide solution oil problem in Iran and alleviate political pressures from North and South on central govt. Ala feels exclusive British oil interest in South is causative factor in recent sequence of events involving British military moves in Iraq,20 Soviet concentration near Azerbaijan, and probable renewed Soviet pressure on central govt.
Dept explained that recent public utterances21 referred to by Ala relate to creation international oil body under UN for advisory [Page 31] rather than regulatory purposes. Consequently, US Govt unable sponsor at this time creation international oil organization before UN. Furthermore, Dept unable support inclusion AIOC concession in proposed organization since it is morally bound observe provisions Anglo-American Oil Agreement22 providing for respect of existing concession and lawfully-acquired rights even though such agreement not yet ratified by Senate.
Summarizing Dept’s views expressed Ala, (1) Dept concurs in principle with objectives implicit in Amb’s suggestions that oil situation be treated protect Iranian sovereignty; (2) Dept must study proposal establishment joint Co suggested by Amb vis-à-vis merit of concessions being held by several private Cos before further comment on proposal; and (3) Dept would consider, at appropriate level, question approaching British authorities to ascertain views re proposal.
Copies Dept’s public utterances re oil, informal note Iranian Amb, and memo conversation being forwarded air mail.
Sent Tehran, repeated London and Moscow.
- Informal notes of July 19 and 22 not printed; discussion took place on August 21 with officers of the Petroleum Division and the Division of Middle Eastern and Indian Affairs.↩
- Hussein Ala, Iranian Ambassador.↩
- A general strike of workers in Abadan took place in July 1946. The British viewed the strike essentially as an attempt to advance Soviet interests and not primarily as a labor dispute and despatched 15,000 troops to nearby Iraqi waters (Basra) from India.↩
- Reference is to Mr. Loftus’ address of July 30 (see p. 28) and to the participation by Mr. Loftus and Charles B. Rayner, Adviser on Petroleum Policy, in a broadcast on “Oil and International Relations” over the National Broadcasting Company on August 17, 1946.↩
- For text of agreement, signed at London, September 24, 1945, see Department of State Bulletin, September 30, 1945, p. 481; for information on this unperfected agreement, see bracketed note, Foreign Relations, 1945, vol. vi, p. 244.↩