Foreign Relations of the United States, 1947, The Near East and Africa, Volume V

891.6363 AIOC/2–747: Telegram

The Secretary of State to the Embassy in Iran

secret

Washington , February 13, 1947—8 p. m.

67. Embtel 97 Feb 7.¹ Expect Senate Foreign Relations Committee begin consideration Anglo-American Oil Agreement² early March. Dept hopes for prompt action by Senate after completion Committee hearings.

Unless subsequently incorporated in legislation unable state O’Mahoney Committee report³ represents official US petroleum policy. Believe however principles in O’Mahoney report in which Iran especially interested are fully covered in Anglo-American Oil Agreement. These include respect for existing concessions and safeguarding interests of producing countries with view to their economic advancement. While promotion full development petroleum resources of world for benefit all people not specifically covered in Agreement, believe this necessarily follows from principle just referred to and from Agreement as whole. These and the other principles and objectives as set forth in the Agreement represent best available statement of US foreign oil policy. Ratification of Agreement by Senate will serve to reinforce official stature these principles. However, failure of Agreement in Senate not expected in any way prejudice them since opponents of Agreement have not attacked policy principles incorporated therein. Instead they have opposed Agreement primarily on allegation it will extend power of Federal Govt over oil by treaty and will lead to govt control of petroleum industry.

Anglo-American Oil Agreement provides that signatory Govts will formulate at early date plans for international conference of interested producing and consuming countries to negotiate multilateral petroleum agreement. Senate ratification of Agreement will give effect this provision and reasonable to assume that such a conference will be called at earliest feasible date. Disapproval of Agreement by Senate probably would render initiative by US in promoting international oil conference not feasible for indefinite future period.

Dept airmailing five copies Anglo-American Oil Agreement for Emb use and for transmission Iran Govt if considered desirable.

Marshall

1. Not printed.
2. Of September 24, 1945; see footnote 3, p. 628.
3. Entitled “Final Report of the Special Committee Investigating Petroleum Resources”, Senate Report No. 9, 80th Cong., 1st sess. The report was submitted on January 31, 1947.