Office of the Historian

126. Memorandum of Conversation1

Washington, January 25, 1968.

SUBJECT

  • Bahrain Situation; US-Bahrain Relations

PARTICIPANTS

  • Mr. Ray Lay, Chairman, Bahrain Petroleum Company (BAPCO)
  • Mr. Walter Stolz, Director, BAPCO
  • Mr. H. G. Story, BAPCO
  • Mr. William D. Brewer, Country Director, NEA/ARP
  • Mr. John Oliver, E/FSE
  • Mr. James E. Akins, E/FSE
  • Mr. David Newton, NEA/ARP

Mr. Lay said he had recently returned from Bahrain. He had seen the Ruler just after Goronwy Roberts had told the Ruler of the British intention to withdraw by 1971 and had never seen the Ruler so upset. The Ruler has concluded that he can no longer count on the British and he is now trying to ally himself with King Faisal.

Mr. Lay pointed out that the Bahrainis are good friends of the United States and he hoped that we could support them within reason. Right now they are looking for some small gesture of US interest. Perhaps it would be possible to open a “sub-office” of the Consulate General in Dhahran. In reply Mr. Brewer pointed out that at present we are under instructions to cut the number of our personnel overseas by 10 percent and have no resources available for any establishment in Bahrain. We feel that the Shah has no intention of pushing Iran’s claim to Bahrain but he will not publicly retract it. It is important for the parties to keep cool and let the problem disappear by itself over time. Mr. Stolz noted that elimination of the “dual passport” problem would be a help and stressed that the Iranians should show good faith to the Bahrainis.

Mr. Brewer pointed out that the British had acted as a de facto buffer for conflicting interests in the Persian Gulf. Now that they are leaving militarily, the Gulf countries will need to do more themselves to develop a cooperative atmosphere. Stolz observed that the area will face a much greater threat from leftists and perhaps the USG should consider giving some assurances. Mr. Brewer noted this is no time for the USG to assume new commitments. Our position is that the littoral [Page 265] states, not the USG, must replace the British presence by establishing new bases for cooperation.

Mr. Brewer asked Mr. Stolz how he viewed Bahrain’s future. Mr. Stolz thought that the country would remain independent but seek close ties with Saudi Arabia. At present Saudi-Bahraini relations were very good. Mr. Brewer observed that British withdrawal presented us with major problems, but we are still optimistic that some local stability can be developed. The recent New York Times article on the willingness of local rulers to pay for the upkeep of British troops was apparently true. However, the reason for withdrawal was not just financial; internal politics of the Labour Party were involved. Nevertheless we hope that the British will still play a role in the Gulf and that the results there will not be like those in Aden. Mr. Stolz repeated his suggestion about American assurances but Mr. Brewer reiterated that this was not a good time to suggest further American commitments. Mr. Lay suggested again that the Ruler would like something more than monthly visits by Amcongen Dhahran, but any indication of further American interest would be appreciated.

  1. Source: National Archives and Records Administration, RG 59, Central Files 1967-69, POL BAHRAINIS-US. Confidential. Drafted by David G. Newton on February 5.↩