890.0145/10–1948: Telegram

The Ambassador in Iran ( Wiley ) to the Secretary of State

secret

1207. British Ambassador told me today that Persian Gulf sheiks will in about three weeks be given draft proclamation for claiming [Page 50] jurisdiction of sub-sea resources out to median line. They will be given fortnight to think it over and then when they make statement Iranian Government and other interested governments will be notified.1

In my opinion this procedure is very close to previous plan of presenting Iran with “fait accompli” against which Department argued so forcefully. Iran is to be presented with Anglo-American “suggestion” which involves establishing 900 mile boundary line for Iran. Iran is by all odds the riparian state most concerned in division of Gulf but she is apparently not going to be asked to agree plan or even to present her views. Simultaneously, other riparian states all of whom are subject to direct or indirect influence of UK–US Governments will make declaration implementing suggested plan.

It is my considered opinion that Iranians will regard this course of action as US–UK “imperialism”. At the minimum it will create most unpleasant situation which will certainly not be helpful in our current negotiation for renewing military mission contract. It could even undermine present political orientation of Iran. It will surely be excellent grist for Soviet propaganda mill. As Department is aware Iranians are highly sensitive to their rights in Persian Gulf and Bahrein issue has been foremost in Iranian nationalistic agitation.

Am afraid that question of sub-sea resources in Gulf will be handled in a manner that may seriously prejudice our broader interests here. SAG has apparently agreed to award off-shore rights to Aramco (Current Economic Developments September 27). Iran cannot grant concession for another four years by virtue law October 22, 1947. American Independent has presumably obtained off-shore rights Kuwait half neutral zone. Iraq only possesses few miles frontage on Gulf and this is heavily silted. This leaves only sheikdoms/Surely British are in position to resolve disputes between them and to suggest concession areas covering shallow waters which are of interest to oil companies circumscribed so as to give minimum offense to Iran. Concessions could delineate limited areas open to immediate drilling and provide for later inclusion waters over which sheikdoms may [Page 51] eventually have jurisdiction. This should satisfy oil companies as I understand they are not immediately interested in water deeper than 100 feet. As need for overall division Gulf waters becomes more evident Iran could be invited to participate in proceedings on equal footing she deserves.

Sent Department 1207; repeated London 104.

Wiley
  1. Tehran, on October 20, reported information from the British Embassy that the correct timetable called for the sheikhdoms to be given three weeks after receipt of the proposals before they would be free to make any announcements; and that Iraq and Iran would be informed a fortnight after the first communication to the sheikhs and the Saudi Arabian Government. Tehran concluded that “Giving Iran week to consider matter before any proclamations are issued will not soften reaction here very much in my opinion. Iran Government might rush to make some absurd claim to waters around Bahrein.” (telegram 1216, 890.0145/10–2048)