The Secretary of State to the Embassy in Iran 1
343. Ref Deptel 342, Apr. 14, re offshore oil. In conversations with Brit Dept took position based on Embtel 297, Mar. 162 that since Iranians aware discussion you shld approach Iran PriMin as soon as release data SAG proclamation known and explain Saudis, motivated by urgent, practical consideration—namely, bids offshore concessions—asked for US advice and were given copy Truman [Page 122]Proclamation together with statement certain its principles which might be applicable to submerged areas PG offshore SA. Amer Govt, therefore, understands SAG will make announcement embodying ref principles. You shld point out that Saudis will probably and logically refer to seaward extension their jurisdiction and control, limits of which will not be established until need arises, therefore Saudi extension wld not have immediate bearing upon possible future extension Iran assertion jurisdiction adjacent submerged areas Gulf.
Specifically, it is expected that conversations will be held between neighboring littoral states regarding transverse lines as need might arise in near future. You shld state understanding SAG will base proclamation on reasonable and stable principles and that it may be assumed any problems of specific delineation between littoral Govts will be worked out amicably as occasion arises.
Refer Deptel 1025, Nov. 1, 19483 numbered paras 2 through 7 info possible pertinence present situation, especially Bahrein.