Office of the Historian

501.BB Palestine/8–2049: Telegram

The Secretary of State to the Embassy in the United Kingdom 1

confidential
Washington, August 20, 1949—1 p. m.

2987. Dept’s views re procedure outlined by Burrows urtel 3224 Aug 15 as fol:

(1)
Dept concurs steps outlined para 3-A which urtel 3256 Aug 172 indicates already being implemented. As Brit aware Dept has handed Egypt note3 re lifting shipping restrictions and hopes there will be no difficulty getting Persian Gulf crude Haifa. Re Embtel 3256 while Dept appreciates receiving full info on subject it feels matter is of primary concern to Brit and it is therefore not in position to express any opinion re desirability or non-desirability movement of tankers from Western Hemisphere. Re para 3-B4 Dept suggests this might best be handled informally with Nuri in London.
(2)
Nuri’s statement para 4(c) Embtel 3224 wld not necessarily seem indicate offer of free port sine qua non reopening pipeline since prior resumption refinery operations by “pump priming” with non-Iraq crude plus question IPC royalties and loan probable controlling factors Iraqi attitude. While Econ Survey Mission5 (para 3 below) may well find it desirable recommend establishment free trade area Haifa for export–import general merchandise, Dept feels no advantage inclusion refinery and ancillary works in proposed free trade zone unless this step necessary and likely be successful persuade Iraqis reopen pipeline. Dept also inclined doubt practicability proposal in view likelihood negative Israeli attitude. However, Dept wld be prepared reconsider if convincing argument to contrary elicited in discussions with Brit and Fr.
(3)
Dept believes negots at this time through PCC re details free zone impractical in light analysis Depcirtel Aug 16.6 On other hand Haifa question wld seem appropriate problem for study and recommendation by Econ Survey Mission and wld be in line with recommended shift to economic approach gen Palestine problem (para 6 cirtel under reference).

Pls communicate foregoing FonOff and French colleague.

Acheson
  1. This telegram was repeated by air to Paris, Tel Aviv, Baghdad, and Cairo.↩
  2. Not printed; it reported that the British Foreign Office had “told Consolidated Refineries end last week proceed with bringing tankers from western hemisphere and Persian Gulf.” (501.BB Palestine/8–1749)↩
  3. Dated August 12, p. 1304.↩
  4. Of telegram 3224, p. 142.↩
  5. For documentation on the Economic Survey Mission, see pp. 594 ff.↩
  6. See p. 1317.↩