137. Telegram 4015 From the Embassy in Iran to the Department of State 1 2

Subject:

  • Consortium Agreement With Iran

Ref:

  • State 125275, Tehran 3093
1.
Van den Berg (Consortium Secretary) has informed Embassy that Van Reeven and Amouzegar signed agreement morning July 22 which effectively settles Iran’s request for added revenues outside terms five-year Tehran accord.
2.
Agreement provides for:
(A)
9-1/2 rial per ton port fee which will provide GOI With estimated $12–15 million annually. Charge is to become effective as of August 1 and GOI has abandoned all claims to retroactive port charge payments.
(B)
Consortium cash payment of $2.4 million to compensate Iran for loss of revenue to barter oil arrangement with Romania made before February increase in posted prices.
(C)
Consortium agreement to maintain Abadan Refinery throughput at close to 415–430,000 b/d capacity.
3.
Van den Berg stressed above information should be held tightly pending issuance some sort of official announcement.
4.
Comment: This arrangement should mollify key Iranian leaders re “unwarranted” concessions made by Consortium in Libyan and Iraq accords, and should also elimlnate possiblity of unilateral action by GOI against Consortium on these issues.
MacArthur
  1. Source: National Archives, RG 59, Central Files 1970–73, POL 33 PERSIAN GULF. Secret. Repeated to London, Vienna, Jidda, Kuwait, and Dhahran
  2. Ambassador MacArthur reported to the Department on the terms of the consortium’s agreement with Iran for additional revenue outside the terms of the five-year settlement.