No. 260
Memorandum of Conversation, by Robert Sturgill of the Office of Near Eastern Affairs



Oil Advisory Firm Selected by the SAG.
An Independent Adisor to Prince Mish’al.


  • Aramco—
  • J. Terry Duce, Vice President, Government Relations.
  • Floyd W. Ohliger, Vice President, Concession Affairs.
  • Garey Owen, Company Representative to the SAG.
  • NE—Mr. Hart
  • NE—Mr. Sturgill
[Page 604]


Mr. Duce brought Mr. Ohliger and Mr. Owen, who recently returned to the US from Dhahran for a brief visit, into the Department for an informal meeting with Mr. Hart. Mr. Ohliger said he would remain in the US for about two or three weeks. Mr. Owen said he was returning to Saudi Arabia on June 30.

After briefly referring to the background of the SAG-Aramco negotiations, which are in temporary suspension by mutual agreement,2 Mr. Ohliger said the SAG had chosen the firm of DeGolyer and McNaughton of Texas to advise the Government on certain aspects of the negotiations. The firm, Mr. Duce said, is known to be extremely competent on oil pricing problems, and Aramco officials are pleased over the selection. He outlined briefly how the Texas firm was chosen: Following suspension of the discussions, Sheikh Abdullah Suleiman had cabled the Saudi Arabian Ambassador in Washington for assistance in choosing three advisors, one Mexican, one Venezuelan, and one Canadian. The Ambassador had spoken to him (Duce) about it and then had discouraged this request, pointing out to the Finance Minister that Mexico had no real oil industry and therefore no advisors, that Venezuelan oil competed directly with Saudi oil, and that if it were a Saudi desire to keep the British out of the country as much as possible, then a Canadian should not be named. The Ambassador recommended DeGolyer and McNaughton. This firm, Mr. Duce added, also is a consultant for the US Navy.

. . . . . . .

  1. This memorandum of conversation was prepared on June 23.
  2. See footnote 2, Document 252.