887.2553/4–2353: Telegram

No. 289
The Acting Secretary of State to the Embassy in Lebanon1

confidential

1917. Memorandum from U.K. representatives Washington states Lebanese Government exerting pressure IPC allocate twenty percent Tripoli production local marketers. British suggest coordinated approach Lebanese Government pointing out our Governments cannot condone action voiding 1952 agreement or approve negotiations under duress; that transit and market arrangements have always, as provided for in concession, been negotiated between company and Lebanese Government and that Lebanese Government cannot expect IPC accept unilateral action this matter since [Page 665] production allocation is one of benefits to follow ratification of 1952 agreement.

Department assumes Embassy informed and proceeding take appropriate measures informally prevent any such unwarranted action by Lebanese Government bearing in mind that IPC is a U.K. company with predominant U.K. interest and consequently U.K. should logically take initiative. Department opposed to formal coordinated approach with British at this time but favors effective cooperation at Beirut and has so informed British Embassy. Presumably U.K. Embassy Beirut has appropriate instructions.

Smith
  1. Drafted by Penniman and cleared by NEA and, in draft, by OMP and L/E.