Foreign Relations of the United States, 1952–1954, The Near and Middle East, Volume IX, Part 1

883A.2553/7–753: Airgram

No. 301
The Secretary of State to the Embassy in Lebanon¹

secret

Washington, July 8, 1953.

A–6. Re Beirut tele 23 July 7.² FYI only. Telegram from Duce to C.A. Swigert of Tapline in Beirut dated June 26 follows:

• “1. In conference with Malik he states that Chamoun asked him when he was in Lebanon to initiate negotiations within the US for revision of present contract.
• “2. Malik explained he had now received papers and was now prepared: (a) discuss this with proper people in Tapline and that Chamoun had explained he did not want to do anything that would appear to be anti-business and, particularly, anti-Western; (b) that Malik was also instructed seek assistance of U.S. Government in negotiations if necessary.
• “3. Malik reports that Chamoun was anxious to get matter out of political atmosphere of Beirut, where negotiations were subject to political gossip and undesirable influences.
• “4. Chamoun was anxious to complete negotiations before the September meeting of parliament, when he would present a contract for ratification in early days of meeting when ratification is easier.
• “5. Malik further stated that he sought my advice as to whether he should send a formal letter to Tapline and take the matter up formally with the U.S. Government. He assured me he was most anxious not to have matter of contract become subject of political contention.
• “6. I replied that I appreciated his approach to matter and that I would communicate with you promptly suggesting that I would have your reply as to procedure by Monday. I added that I knew little myself about the economics of pipeline and/or the present status of our contract but that I understood Tapline was making regular payments under the contract negotiated last year. I suggested for the present I refrain from contacting you or the U.S. Government or sending a formal letter to Tapline; that I was not empowered to act for Tapline in such matters with the Lebanese Government, that if any negotiations were to take place here, it would probably mean your return from Lebanon.
• “7. I reminded Malik that Tapline were transient agencies competitive with tankers and that their economics were complicated by numerous problems. I added that we were presently leaving business to tankers as shown by shutbacks this month.
• “8. May I suggest that direct private discussion between you and Chamoun alone seem indicated. Please advise what I should report to Malik.”

Duce reported July 7 (a) Swigert disapproves informal Malik–company talks in U.S.; (b) Malik informed and stated he had no other course but to send formal letter to company. US Government participation has not been solicited by either party.

Dulles

1. Drafted by Funkhouser and cleared by PED.
2. Not printed. Swigert informed the Embassy he had told President Chamoun that Tapline’s willingness to discuss matters did not mean the company was prepared to consider revising the existing agreement, and the Lebanese request for the U.S. Government to take an active part in discussions between the company and a foreign government was inconsistent with U.S. policy in such matters. The Embassy agreed the company’s relations with Lebanon did not require interest beyond that already manifested. (883A.2553/7–753)