Eisenhower Library, Eisenhower papers, Whitman file
No. 408
Memorandum of Discussion at the 180th
Meeting of the National Security Council, Washington, January 14,
19541
eyes only
Present at the 180th meeting of the Council were the President of the United States, presiding; the Vice President of the United States; the Secretary of State; the Acting Secretary of Defense; the Acting Director, Foreign Operations Administration; the Director, Office of Defense Mobilization. Also present were the Secretary of the Treasury; the Acting Secretary of the Interior (for Item 1); the Secretary of Commerce (for Item 1); the Director, Bureau of the Budget; the Chairman, Atomic Energy Commission (for Item 3); the Federal Civil Defense Administrator (for Item 3); the Under Secretary of State; the Service Secretaries and the Joint Chiefs of Staff (for Item 3); Col. Bonesteel, Mr. Lehrer and Col. Powell, Department of Defense (for Item 3); the Director of Central Intelligence; the Assistant to the President; Robert Cutler and C. D. Jackson, Special Assistants to the President; Richard L. Hall, NSC Special Staff; the Executive Secretary, NSC; and the Deputy Executive Secretary, NSC.
Following is a summary of the discussion at the meeting and the chief points taken.
[Here follows discussion of items 1–7, significant world developments affecting United States security, a national petroleum program, continental defense, United States objectives and courses of action with respect to Southeast Asia, United States civil administration in the Ryukyu Islands, United States objectives and policies with respect to Austria, and the functions of the armed forces and the Joint Chiefs of Staff.]
8. United States Policy Toward Iran (NSC 5402; NSC Action No. 998-d)2
Secretary Dulles said that he had one important item to raise for Council consideration in connection with Iran. Mr. Herbert Hoover, Jr., had just reported that the British at long last seemed to be ready to go along with us, and the Cabinet had made a decision to accept a minority position for British interests in any oil consortium created in order to market Iranian oil. This British decision [Page 898] now puts the problem back in our laps, and our first task is to include American oil companies to accede to the plan for a consortium. Before they will agree to this plan, the American companies will require an opinion from the Attorney General as to the legality of their action. In turn, the Attorney General, with whom, said Secretary Dulles, he had discussed this point at breakfast this morning, would want a supporting decision by the National Security Council. Time was of the essence, and Secretary Dulles proceeded to read language to the Council which he believed constituted a decision by the National Security Council which would suffice for the purposes of the Attorney General.
The President said that the Attorney General had also discussed this matter with him, and had made clear that he had no intention of permitting American oil companies who might join an international consortium to extend their position to the point of fixing the sale price of petroleum products.
Mr. Cutler then said that he would discuss with the Attorney General, as soon as he returned to the city, the language proposed by the Secretary of State, and would draft an appropriate action by the National Security Council in the light of this discussion.
The National Security Council:3
Agreed to advise the Attorney General that the security interests of the United States require that United States petroleum companies participate in an international consortium to contract with the Government of Iran, within the area of the former A.I.O.C. concession, for the production, refining, and acquisition of petroleum and petroleum products; in order to permit the reactivation of the said petroleum industry and to provide therefrom to the friendly Government of Iran substantial revenues on terms which will protect the interests of the western world in the petroleum resources of the Middle East.
Note: Noting that this action did not cover the sale of petroleum and petroleum products by the international consortium, the President subsequently approved the transmittal of this action to the Attorney General.
- Drafted by Gleason on Jan. 15.↩
- For text of NSC 5402, see Document 403. For text of NSC Action No. 998-d, see footnote 8, Document 401.↩
- The paragraph and note that follow constitute NSC Action No. 1015. (S/S–NSC (Miscellaneous) files, lot 66 D 95, “Record of Actions by the NSC, 1954”) Cutler sent the Attorney General a memorandum later on Jan. 14, informing him that the NSC took this action. (888.2553/1–1453)↩