867N.6363/11–2349: Telegram
The Acting Secretary of State to the Legation in Lebanon
716. Unrinfo only. During current conversations here Wright of FonOff1 has emphasized importance to UK of reopening Haifa Refinery on Iraqi crude stating one semi-official estimate annual dol loss UK due non-operation refinery amounts to $50 million. Dept officials agreed US shld continue give ancillary support UK efforts resume supply Near Eastern crude Haifa.
During Arab League Polit Comm meeting Cairo Sirry Pasha stated Egypt unable permit Persian Gulf tankers en route Haifa transit Suez Canal unless Iraq reopened Kirkuk Haifa pipeline. Nuri Said declared he presently unable agree opening pipeline but hinted to Brit Emb Cairo he perceived no objection shld oil companies service Haifa refinery with tanker crude from Tripoli.
Brit Emb here advises Brit Min Beirut under FonOff instrs requested Leb PriMin Nov 10 agree proposed movement tankers carrying Iraqi crude from Tripoli to Haifa. PriMin recd proposal calmly but expressed opinion he cld see no advantage this procedure to Arabs. However, he wld submit proposal Leb cabinet and if it agreed he [Page 157] wld consult with other Arab States and obtain their reaction. Brit Emb has received no further info this regard. End info.
In ur discretion after consultation with ur Brit colleague pls approach Leb Govt informally as fol: USG concerned over failure resume full scale production Haifa refinery in ECA countries and exploring all practicable means reduce UK dol drain. US understands UK making specific proposals supply Haifa Refinery with Near East crude and has requested Leb Govt cooperation. View US gen interest this question as outlined above it wld welcome any assistance Leb Govt can appropriately extend facilitate reopening refinery.2
- For documentation on these conversations, see pp. 50 ff; see particularly annexes 8 and 9 in the form of statements on Near Eastern oil problems by the United States and United Kingdom Groups, pp. 80 and 82.↩
- This telegram was repeated to Baghdad and London and sent by air to Paris and Cairo. The Department, by circular telegram of December 1, 7 p. m., authorized Cairo, Baghdad, Damascus, Jidda, and Amman, “In ur discretion after consulting ur Brit colleague pls informally approach Govt to which you are accredited stating USG favors UK proposal for reasons outlined Deptel 716 to Beirut, and hopes Arab states will not oppose it. Amb Jidda shld not approach SAG unless Brit Amb has done so. Ambs Cairo and Baghdad shld inform Egypt and Iraqi Govts respectively USG concurs UK view re desirability lifting restr[iction]s on passage thru Suez Canal tankers bound for Haifa as well as reopening Haifa pipeline. US believes such action wld benefit primarily oil producing Arab states and consumers in Europe, and that continuation restrs unjustified.” (867N.6363/12–149)↩