800.2553/4–1753
Memorandum of Conversation, by the Assistant Legal Adviser for Economic Affairs (Metzger)
- Subject:
- Request for Omission of ARAMCO and of Foreign Oil Companies as Defendants in Proposed Civil Antitrust Suit
- Participants:
- Mr. Leonard Emmerglick, Special Assistant to the Attorney General.
- Mr. Stanley D. Metzger, Assistant Legal Adviser for Economic Affairs, Department of State.
Following the 9:15 A.M., April 17, 1953 meeting between Mr. Phleger and the Attorney General,1 Mr. Metzger, at the request of [Page 1350] the Attorney General, discussed the above subject with Mr. Emmerglick.
- 1.
- Regarding ARAMCO, Mr. Emmerglick was informed that there was reason to believe that ARAMCO would agree to deliver, upon service of a subpoena, documents of a character similar to those which a court order would direct its parent companies to deliver, if it could be eliminated as a party defendant. The Company had indicated that it would prefer that this agreement be an oral agreement. Mr. Emmerglick was at first opposed to the suggestion, but, after discussion, agreed if, as a minimum, the agreement were in the form of a written stipulation, and if it contained a time limit—that ARAMCO would deliver over documents of a character similar to those which its parent companies or any one of them were required to turn over under court order, within five days after such an order. Mr. Metzger then called the ARAMCO representatives, explaining the Justice Department’s present proposal, which was quite close to the company’s earlier position, and recommending its acceptance by the Company. The Company representatives indicated that they were prepared to accept, and that they were willing to come to a 2:00 P.M. meeting in Mr. Emmerglick’s office to sign such a stipulation; Mr. Emmerglick indicated his willingness to draft such a stipulation. It thus appears that, under this arrangement, ARAMCO will be eliminated as a defendant in the proposed civil suit to be filed on April 21. Mr. Metzger stated that similar considerations were involved in Bahrein, Kuwait, and Iraq Petroleum Companies. Mr. Emmerglick did not indicate anything in regard to these companies.
- 2.
- The matter of the elimination of foreign oil companies was discussed. After considerable discussion, it appeared that the Justice Department might be willing to eliminate the Anglo Iranian Oil Company as a party defendant, since, in the face of its limited operations in the United States it was doubtful that any decree directed against that company could be effectively enforced. The matter of public relations in the event that the Anglo Iranian Oil Company were dropped, which appeared to worry Mr. Emmerglick, was discussed, and Mr. Metzger made some suggestions. Mr. Emmerglick is to see the Attorney General on this and the other foreign oil companies at 4:00 P.M. this afternoon.
The Dutch Shell group was also discussed. Asiatic Petroleum Company, which operates extensively in the United States and which is a member of the Shell group, is going to be made a party defendant, and there seemed to be no basis upon which its elimination could be based. Regarding the Royal Dutch Shell Holding Company, the same considerations appeared to apply as in the case of the Anglo Iranian Oil Company, but there appeared to be much [Page 1351] greater reluctance on the part of the Justice Department regarding dropping that Company.
Mr. Emmerglick agreed to take these matters into consideration with the Attorney General later in the afternoon. Mr. Metzger agreed to be in Mr. Emmerglick’s office for the 2:00 o’clock meeting with the ARAMCO representatives, at which time the stipulation as to documents will, it is hoped, be consummated.2