513. Telegram From the Department of State to the Office of the Permanent Representative to the North Atlantic Council1

Topol 738. Paris for USRO and Emb.

1.
Following guidance in view possibility request for action on oil through meeting Oil Committee OEEC and in view possibility question being raised either by British Chairman or Italian Vice Chairman.
2.
We estimate oil shortages in Europe within month unless Suez Canal can be opened quickly which seems unlikely or unless coordinated action by international oil companies to prevent shortage undertaken soon. Coordinated action cannot prevent shortage if pipelines inoperative but can mitigate it.
3.
We well aware adverse effects oil shortage throughout Europe on economic, political and social stability. However in view of US disagreement with UK and French action re Egypt we must not give appearance that we are now entering into special arrangements with UK and French to support their use of force against Egypt. Any such impression would undermine our position based upon fundamental principles and prevent us from exercising constructive influence with majority of free nations to limit damage done by UK–French resort to force. Therefore, we anxious avoid any action or consultation that gives impression of tripartite (US–UK–French) action. Would strongly prefer that such action as we take rest firmly on response to initiative countries which are prospective victims of consequences British-French action whether in a series of individual representations or through OEEC Oil Committee. US position least difficult if prime emphasis is on question relieving general European distress rather than offsetting shortages caused by British-French military effort. Have already received very general representations Sweden, Denmark, Portugal, Italy and note Norway remarks Polto 9822 suggesting US action to relieve potential shortages in Europe. Representation to date has been general expression of concern rather than specific request for action. Our replies have emphasized OEEC agreed principles resultant burden would be shared and countries [Page 1010] individually should not seek by their action cover own needs to detriment general position.
4.
Have been somewhat surprised no request yet for OEEC Oil Committee attention this problem. Do not wish to stimulate it but foregoing is for guidance especially USRO, Paris and London Embassies on our desire keep emphasis on European as distinct from British-French aspects of problem. In any coordinated action which may later be taken we particularly desire that European effort be conducted within framework of principles approved in Oil Committee and particularly that there be the connection between London Advisory Committee and OEEC Oil Committee which was contemplated.
5.
Do not approach British and French with foregoing and in response their approaches confine replies for time being to substance first two sentences para 3.

For Emb London: MEEC mentioned Embtel 24553 was cancelled for reasons indicated. Not true Justice Dept has withdrawn anti-trust immunity.

Hoover
  1. Source: Department of State, Central Files, 840.2553/11–256. Confidential. Drafted by Moline (EUR/RA) and MacArthur; cleared by Rountree, Elbrick, Beckner (FSD), Timmons (EUR/RA), and in substance with Flemming; approved by Hoover. Repeated to London and Rome.
  2. Polto 982, November 2, contained an account of the private session of the North Atlantic Council held during the afternoon of November 2. (Ibid., 740.5/11–256)
  3. Document 468.