891.6363/1–1347: Telegram
The Chargé in Iraq (Moose) to the Secretary of State
15. Prime Minister Nuri Pasha yesterday expressed concern over recent reports of large increase in oil production and export from Saudi Arabia and Iran. He fears that expanded production neighboring oil fields will hamper increased production in Iraq, thus disappointing Iraqi hopes of greater oil royalties. He brushed aside increase in IPC production resulting from current pipe line construction saying that it was an old project delayed by war conditions. He lamented that pipe lines in Iraq had to be made in Britain, as British were incapable of making large pipe. He added that 12-inch pipe line now being laid was unimportant when compared to 30-inch pipe lines spoken of for Abadan and Saudi Arabia.
In this connection it should not be overlooked that pipe line from Abadan would probably have to run through Iraq. Nuri, who has influence [Page 634] with Regent in addition to his own standing as country’s eldest statesman and Prime Minister, might place difficulties in way of proposed line from Abadan.
With reference to IPC Nuri said that it would be beneficial for the American interests in that company to purchase the French share thus putting American interests on a par with the British and enabling Americans to share in company’s management (reEmbtel 668, December 31, 1 p. m., 19461). Nuri evidently assumes that British either own or effectively control Royal Dutch Shell. Nuri stated that France has no political or economic interests in this area; and no experience in operating an organization such as IPC. He thinks therefore that a guaranteed oil supply in addition to the purchase price should be sufficient compensation for the French.
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