Foreign Relations of the United States, 1950, The Near East, South Asia, and Africa, Volume V

886A.2553/11–1850: Telegram

The Ambassador in Saudi Arabia (Hare) to the Secretary of State

secret
priority

Jidda, November 18, 1950—10 a. m.

311. Deptel 169, November 14.¹ Memo delivered yesterday afternoon to Prince Feisal who came especially from Mecca for purpose.

After I had orally summarized contents of memo Feisal expressed thanks for message and spirit in which sent. So far he had only heard one side of case but he had to admit that what he had heard was disturbing because it reflected an attitude of deliberate noncooperation by Aramco, in matter of concern to the country. Perhaps the company had its reasons but, if so, they had failed to make their position clear and bad impression had been created.

Past relationship with Aramco had been characterized by friendship and, on that basis, SAG had been very easy-going with Aramco but latter had reacted in letter-of-the-law attitude. As consequence, situation had arisen which presents real problems but which could have been avoided if difficulties had been talked out reasonably as they arose.

His position in matter was like that of judge and he would keep open mind until he had heard all evidence. As far as he personally was concerned he had known many Aramco officials and had found them good people with whom to deal and he hoped present difficulties could be worked out satisfactorily.

Foregoing is distillation of fifty-minute conversation in which I went over usual arguments on subject with particular emphasis on necessity of not regarding problem as merely domestic but as related to complex competitive distribution system. Feisal said that as good judge he would feel obligated to consider all aspects of problem. I said that was all we asked.

At end of conversation, Feisal expressed hope Davies would come with full negotiating powers and not have to refer anything back to New York.

Feisal was in good humor throughout discussion and I believe that, at least as far as he concerned, memo achieved purpose.

Hare

1. Not printed; it requested the Ambassador, unless he and Owen perceived strong objections, to deliver the memorandum transmitted in telegram 161, preferably before November 17 so that it would precede the arrival of Davies and Spurlock in Jidda. It reported that at a November 13 meeting Aramco and parent company officials agreed with Department of State officials that the memorandum offered important advantages in setting the tone of the negotiations. (886A.2553/11–1250)