867N.6363/8–2349: Telegram

The Ambassador in the United Kingdom (Douglas) to the Secretary of State

secret

3333. Deptel 2987, August 20. Department’s reactions British program for reopening Haifa refinery and pipeline communicated Burrows August 22. During latter part of conversation, Le Roy of French Embassy joined meeting and gave following comments his government:

(a)
French Government dubious re likelihood Israeli Government making statement free port proposal for Haifa.
(b)
In view foregoing, French Government feels it would be mistake to make approach to Iraqi Government conditional on Israeli statement. (Burrows pointed out Foreign Office did not propose make approach to Iraqis conditional on Israeli Government making proposed statement and had in fact indicated that even if Israel not willing make such statement, Foreign Office would wish proceed with rest of program—see paragraph 3(C) Embtel 3224, August 15.)
(c)
In event Israeli Government were willing make statement re free port, French Government did not feel British Government should approach Egypt on basis that since Israeli Government had stated willingness establish free port, Egyptian Government should permit passage tankers. French Government felt that such an approach [Page 147] would constitute British recognition Egypt’s violation of 1888 Suez Canal agreement. (Burrows pointed out he had not proposed the two questions should be tied up in this fashion. Foreign Office would merely rely on publicity value of Israeli statement, hoping it would make Egypt more amenable permit passage tankers.)

2. Burrows stated that in light US and French views re unlikelihood any success persuading Israel make statement for free port proposal, Foreign Office would wish reconsider this aspect of problem and would give us its views later. Meanwhile, Foreign Office and company proceeding with remainder of program. First Western Hemisphere tanker due arrive Haifa about September 18 and plans are proceeding load Persian Gulf tankers which are now scheduled arrive shortly before that date. Foreign Office looking into this question in order arrange simultaneous arrival as originally planned.

3. Burrows attention was directed to numerous recent articles in British press emanating from Tel Aviv to effect Israeli Government applying pressure on company to reopen refinery, with attendant threat take refineries over and operate them itself in event company does not do so. Burrows stated that UK charge Tel Aviv has been told by Israeli Foreign Office to take no notice these press statements. Burrows admitted, however, press statements are worrying him since now it will appear that HMG has been forced take action by Israelis.

Sent Department 3333; repeated Baghdad 77, Cairo 118, Paris 645, pouched Haifa.

Douglas