891.6363 AIOC/1–2047: Telegram
The Secretary of State to the Embassy in Iran
44. In discussion with McCollum SONJ Jan 21 (urtel 52 Jan 201) it was indicated SONJ–AIOC pipe line will originate in Iran and that SONJ expects AIOC supply substantial quantities petroleum therefrom in fulfillment recently announced crude oil contract.
Details SONJ–AIOC pipe line agreement not yet finalized. Dept informed McCollum it was definitely undesirable and probably not feasible for SONJ own interest in section of pipe line located in Iran as this would require negotiation by Co with Iran Govt. McCollum said SONJ–AIOC agreement was flexible enough to allow necessary pipe lines within Iran and Kuwait to be wholly owned by AIOC and operation within these areas to be considered part of gathering function to be performed by AOIC with jointly owned pipe line beginning in Iraq. He also said that considering Dept’s views arrangements would be worked out on this basis.
Undecided whether pipe line Co will be American or Brit corporation but agreement has been reached that SONJ will operate line.
Pls repeat to London as No. 426; to Baghdad as No. 25; to Cairo as No. 130.
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