Office of the Historian

891.6363/10–1047: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom

secret
Washington, October 10, 1947—7 p. m.

4389. For ur confid info Wm. Keck, Jr. representing Superior Oil Co of Calif and Max Thornburg representing Central Mining and Investment Corp (a Brit Corp) came in separately1 to inform Dept regarding plans of these companies undertake negotiations jointly for oil concessions covering neutral zone Kuwait and Saudi Arabian [Page 667] territory,2 including territorial and extra-territorial waters. Superior-reps stated their interest territorial and extra-territorial waters relates-primarily to Persian Gulf. However, they denied in this connection, any intention conducting oil exploration in Persian Gulf except by virtue concession contract granted by Govt claiming mineral resources. Dept indicated any action by Superior at this time which would give rise dispute in Persian Gulf regarding territorial or extra-territorial waters would be regarded as contrary to US interest.3

While effect this plan on Aramco concession was not discussed with Superior reps latter [former covers all of eastern Saudi Arabia, including territorial waters and islands. Presumably Superior has in mind obtaining concession for those mineral rights which SAG may claim in Persian Gulf beyond its territorial waters and by virtue of SAG adopting continental shelf principle previously proclaimed by USA.4 (See Depcir desp Oct 17, 19455 re continental shelf.)

Thornburg informed Dept he has been employed as advisor for Central Mining, also corroborated Superior statement that Hugh Weightman representing Central Mining would consult King Ibn Saud and that other company rep would consult FonOff re foregoing proposal. Thornburg of opinion FonOff will discourage Central Mining from seeking concession involving territorial or extra-territorial waters in Persian Gulf because of many unresolved questions and possibility of disputes resulting therefrom.

Pls do not discuss this matter with FonOff or other Govt reps, but report promptly any info coming ur attention, particularly, regarding scope conversation between Central Mining and FonOff reps.6

Lovett
  1. On October 8.↩
  2. According to a memorandum of conversation by Richard H. Sanger of the Division of Near Eastern Affairs, dated October 9, Mr. Keck announced interest in the section of western Saudi Arabia not included in the Aramco concession. (890.6363/10–947)↩
  3. Mr. Henderson also informed Mr. Keck that the Department had no objections to American oil companies obtaining concessions in the Kuwait neutral zone and those portions of Saudi Arabia not previously committed. (890.6363/10–947)↩
  4. For documentation on the policy of the United States Government in connection with this principle, see Foreign Relations, 1945, vol. ii, pp. 1481 ff.↩
  5. Not printed.↩
  6. This telegram was repeated to Jidda, Cairo, and Basra.↩