867N.6363/3–1846: Telegram
The Chargé in the United Kingdom (Gallman) to the Secretary of State
us urgent
[Received March 18—4:07 p.m.]
3105. Reference Deptel 2352, Mar. 16. Since Department’s instruction re payment of transit tax to Transjordan Govt in consideration of pipeline concession crossed our No. 3087 of same date10 reporting that Lenahan had been authorized to drop transit tax in favor of payment for security and since Lenahan tells us that he is still working under those instructions and that our intervention at this point in favor of transit tax would only serve to muddy waters we are holding up action and would suggest Dept’s clearing matter with Aramco with view to coordinating instructions to Embassy and Lenahan.
It may be pointed out, however, that altho matter of payment is important factor question which first needs to be clarified is legal right of company to concession and British obligations in that connection under provision 1924 treaty. After sending our No. 3087 we had another long conversation with representatives of American and Eastern Depts of Foreign Office who expressed personal and informal view that considerations of mutual interest aside British Govt probably under legal obligation to assist company but they felt it necessary to obtain ruling from Legal Dept of Foreign Office and said they would endeavor to do so without delay. It would be helpful therefore to have Depts views as soon as possible in order to assist us in pressing for early decision which would enable Lenahan to pursue his negotiations. As matter stands he feels it undesirable to proceed until it is clearly established where responsibility actually rests.
[Page 25]Incidentally we understand that British treaty with Transjordan will include clause providing for Emir’s assuming responsibility for obligations incurred in his behalf by British Govt and it seems probable that 1924 convention would fall into category of such agreements.
- Not printed.↩