890F.6363/6–948: Telegram

The Secretary of State to the Embassy in Egypt

secret

757. No reply was sent to Jidda’s 231 Apr 271 in view our desire not to aid any company to obtain off-shore oil concessions in Persian Gulf [Page 16]until recommendations of Dept could be correlated with Brit and presented to Persian Gulf States (Cairo’s 4842 May 21) as set forth in Deptel 170 May 8 to Jidda (now being rptd Cairo).

Our policy towards Superior Oil Co should accord with statement made to Superior Vice-Pres Wood May 6 by Dept officials who told him Dept desired to be of equal service to all Amer companies and that while Superior was relatively new in ME Dept was prepared to maintain just as good relations with Superior as with any other oil co operating in that area. Courtesies extended to reps Superior should not be of such nature as to create impression US Govt is supporting their efforts to obtain undersea concessions.

Sent Cairo as Depts 757 rptd Jidda as Depts 227.

Marshall
  1. Not printed; it reported that “Legation is in receipt request from AmEmbassy Cairo on behalf Superior Oil Company permission for that company land plane Jidda several times during 5-day period beginning about May 4”. Jidda advised that it would take no action on the request in the absence of instruction from the Department, “In view statement by Satterthwaite to Keck of Superior Oil Company in Department that it would be embarrassing to US Government to have problem extraterritorial waters in Red Sea and Persian Gulf open at this time and that any such undertaking would be contrary US interests” (890F.7962/4–2748). Regarding the Satterthwaite-Keck conversation, see telegram 4389, October 10, 1947, to London, Foreign Relations, 1947, vol. v, p. 666. Joseph C. Satterthwaite was Deputy Director of the Office of Near Eastern and African Affairs.
  2. Not printed.