Foreign Relations of the United States, 1952–1954, Iran, 1951–1954, Volume X

GTI files, lot 57 D 155, “NSC”

No. 412
Memorandum by the Consultant to the Secretary of State (Hoover) to the Secretary of State

top secret

[Washington,] January 21, 1954.

Subject:

• National Security Council Action on Iranian Oil Settlement

1. The memoranda and documents presented herewith¹ are designed to permit United States petroleum companies to participate in the settlement of the Iranian oil controversy without violation of the antitrust laws. The proposed actions constitute a necessary implementation of the action adopted by the National Security Council on January 14.

2. The first memorandum, “Proposed Iranian Consortium Plan”, outlines the broad principles which should permit the companies to (a) form an international petroleum organization, (b) negotiate a contract with the Government of Iran, and (c) operate the producing and refining facilities in that country. It is my understanding that the Attorney General is prepared to present an opinion, with certain reservations, that the plan as set forth is not in violation of the antitrust laws.

3. It is further proposed that the National Security Council should authorize and direct the Secretary of State to inform the appropriate United States petroleum companies of:

(a) The sense of the National Security Council action of January 14,

(b) The contents of the proposed Iranian consortium plan,

(c) The opinion of the Attorney General; and further authorize and direct the Secretary of State to inform such other persons and governments as are appropriate.

1. References are to Attorney General Brownell’s letter to the NSC, Jan. 20, and its attachment (supra), and Cutler’s memorandum of Jan. 14 to Brownell informing him of NSC Action No. 1015 (see footnote 3, Document 408).