891.6363 AIOC/1–2948

The Secretary of State to Mr. George Koegler of the Standard Oil Company of Jersey

Dear Mr. Koegler: I am writing with reference to your letter dated January 291 regarding the probable need to abandon the proposed pipeline project designed to transport oil from Iran and Kuwait to the Eastern Mediterranean unless the Government of Iraq changes its attitude in refusing to grant the necessary pipeline right of way.

I note your statement that the Prime Minister of Iraq has communicated to a representative of your company and to the Chairman of Anglo-Iranian the refusal of his government to issue any pipeline right of way to any company in which any American capital participates because of the position taken by the United States with respect to the Palestine question.

As you are no doubt aware, it is my strong feeling, in which the Secretaries of Defense and the Interior concur, that the oil of the Middle East is an important factor in the success of the European Recovery Program and in the continued prosperity of Europe. It is also an important factor in the more immediate sense of our own national interest. It is hoped, therefore, that your company will not find it necessary to take any action at this time which would result in the abandonment of the project described in your letter. It would be unfortunate for your company to allow current international political complications to cause the abandonment of long-range plans which may have beneficial effects on the Middle East, Europe and the United States.

Faithfully yours,

G. C. Marshall
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