222. Memorandum of a Telephone Conversation Between the Secretary of State and the President’s Special Assistant for National Security Affairs (Anderson), Washington, May 24, 1956, 4:05 p.m.1
TELEPHONE CALL FROM DILLON ANDERSON
Sec. returned his call. A. mentioned two Middle Eastern problems. The Baghdad Pact matter was taken care of by Wilson’s [Page 605] second letter.2 The other is the broader question of whether this is a propitious time to undertake in Planning Board the preparation of a new paper on the Middle East. The President said he felt until some order began to show maybe we better hold and watch it from day to day. A. wanted to check with Sec. to be sure he still thought that way. The Sec. said the only thing he thinks there is need of is an analysis of the oil situation and what we would do in various contingencies. This would indicate whether we can put pressure on the Arabs rather than that they could blackmail us. A. said there is a paper that goes into various contingencies rather than policy. Sec. thinks that is the first and compelling problem—what are the facts, and what do we do in various contingencies, and how much of a chance are we taking? A. said maybe the facts will indicate a new policy. The Sec. has not seen the study. A. said it is available and thinks it is pretty good. A. mentioned joint planning with British on oil. Sec. said nothing has been done politically. A. mentioned, and only to Sec, … planning with the group of American companies, and that would not come to Planning Board. A. said the British paper comes close to the same conclusions ours came to and the Sec. may want to get Bowie or Schwartz3 to give him the essence of it, and the Sec. may want to see something else explored. A. would like to leave it at that—until the President says so there will be no review of the whole policy. A. referred again to the idea of planning with the companies. The Sec. thinks we should talk and plan and he would like to speak to Phleger about it. A. said he wondered if either side would talk unless the President clears it because of political implications and anti-trust laws. A. will leave that with the Sec.