Conference files, lot 66 D 95, “NSC 138 Memoranda”

No. 288
Memorandum by the Legal Adviser (Phleger) to the Under Secretary of State (Smith)

Subject:

  • Civil Anti-trust Oil Case
1.
The United States today filed its complaint in the Civil Antitrust oil case. A copy is attached.1
2.

The Attorney General, at the request of the State Department, dropped the following-named companies from the proposed defendants:

  • Arabian American Oil Company (Aramco)
  • Anglo Iranian Oil Company, Ltd.
  • Royal Dutch Shell Company
  • Bahrein Petroleum Company
  • Mediterranean Refining Company
  • N.V. Pacific Matschapii

You will note that the only defendants named are American companies.

3.
I have advised the Attorney General that the State Department will answer the British and Dutch notes, in which they request the elimination of British and Dutch companies from the list of defendants and that he need not suggest a form of answer.
4.
It is recommended that you write the Attorney General, thanking him for his co-operation in this matter.
5.
The minutes of the Security Council action relative to this matter has been amended to read as follows and has been approved by Mr. Cutler and by the Attorney General.

“b. Noted that the Secretary of State agreed with the decision in a to discontinue the criminal proceedings but believes that the institution of a civil suit would seriously prejudice United States foreign relations unless the proceedings are conducted with due regard for all matters affecting such foreign relations as well as national Security.”

  1. Not printed. The defendants listed in Civil Action No. 1779–53, filed in the U.S. District Court for the District of Columbia, were Standard Oil Company (New Jersey), Socony-Vacuum Oil Company, Inc., Standard Oil Company of California, Texas Company, and Gulf Oil Corporation. (Conference files, lot 66 D 95, “NSC 138 Memoranda”)