10. Telegram From the Department of State to the Embassies in Tunisia and the United Kingdom1

133570. London for Kinsolving. Subject: Tunisian-Libyan Continental Shelf Dispute. Ref: Tunis 4052, London 9435.2

1. Now that we have official confirmation that GOT has changed its position and entered into real negotiations with the Libyans despite presence of American-owned rig in disputed zone, we believe it important to give Reading and Bates President Thornton a new official communication from the USG which reflects the changed situation.

2. For London: Please deliver following message from Deputy Assistant Secretary Veliotes to Charles Thornton ASAP. You should type message in letter form on official stationery—should Thornton desire signed original, this can be sent to his Tulsa office.

3. “Mr. Charles E. Thornton, President, Reading and Bates, c/o London Hilton. Dear Mr. Thornton: I refer to the letter, dated June 3, you received from Under Secretary Habib 3 and our several subsequent telephone conversations. The Department of State has now received official confirmation that the Government of Tunisia has changed its [Page 20] position with respect to its previous policy of insisting that your rig depart the disputed zone before the Tunisian Government would enter into negotiations with the Libyan Government looking to a negotiated settlement of this matter. The Tunisian Government has also officially confirmed that it has extended the “deadline” as concerns the presence and continued drilling of your rig from 10 to 15 days. Given the fact that official negotiations are actually underway and that both governments are reportedly working to find an acceptable compromise, it is clear that the situation has been, to a large extent, defused. Therefore, the circumstances described in Mr. Habib’s letter do not obtain at the present time and, in our judgment, there is at least no immediate danger to the ship and the American citizens on board.

4. “We cannot, of course, predict the course the present negotiations may follow nor the final outcome of these negotiations. It might be prudent for you and your colleagues, along with the Libyan officials, to plan to stay in London until the weekend. We understand, in this respect, that the current round of negotiations are reasonably expected to be concluded by then.

5. “Should circumstances require that we communicate with you after this weekend, we will be in touch through your Tulsa office. With best wishes, Sincerely, Nicholas A. Veliotes, Deputy Assistant Secretary, Bureau of Near Eastern and South Asian Affairs”

6. For Kinsolving: In conveying letter, you should tell Thornton orally that the letter does not constitute a USG “endorsement” of the presence of his ship in the disputed area. Since there is as yet no agreement between the parties, we must abide by the policy in Veliotes’ letter of April to Mr. Kent—i.e. our official position is still one of discouraging American rigs from entering into disputed zones.4 We are not, however, pressing him for an immediate withdrawal because of the changed circumstances, and the possibility that their continued drilling may be agreed by the parties. You should also tell Thornton that we have kept Senator Bartlett’s office up-to-date.

7. Tunis for Ambassador: You should see Chatty as soon as possible and tell him of action we are taking with Thornton. You should express our hope that current negotiations will result in agreement. You should note that we expect Libyans and Americans to depart London by the weekend at the latest.

8. You should also raise with Chatty question of extension to “15” days re presence of American-owned rig. Tunisians should bear in mind that, should current negotiations fail and GOT again presses for [Page 21] withdrawal of rig, it highly unlikely USG will be able to play previous role. FYI You should know that GOT failure to inform us until June 8—and at our explicit request—of decision made on June 4 to change Tunisian position re presence of rig and negotiations, with full knowledge Habib letter, has not enhanced our confidence that GOT has always been candid with us on this whole matter. We do not want to make an issue out of this, but you might find an appropriate occasion to get this point across.5 End FYI.

Vance
  1. Source: Carter Library, National Security Affairs, Staff Material, Middle East, Subject File, Box 89, Tunisia: 2/77–6/78. Confidential; Immediate; Exdis. Sent for information Immediate to Tripoli. Printed from a copy that was received in the White House Situation Room. Drafted by Veliotes; cleared in L/NEA; approved by Habib. (National Archives, RG 59, Central Foreign Policy File, D770206–0559)
  2. In telegram 4052 from Tunis, June 8, Mulcahy reported on Chatty’s assessment of the Tunisian-Libyan negotiations mediated by Arab League Secretary General Mahmoud Riad: “He stated that they had already achieved almost complete agreement on the text of a ‛compromis’ for submission of the dispute to the International Court of Justice (ICJ). In this text only one point remained to be worked out to Tunisia’s satisfaction: While agreement had been achieved between the two parties that no exploitation rpt exploitation would proceed during arbitration process, GOT had not yet won its point that there should also be no exploration rpt exploration during arbitration. He was hopeful that in resumed session with Riadh and Turayki this evening this point could also be agreed upon.” (Carter Library, National Security Affairs, Staff Material, Middle East, Subject File, Box 89, Tunisia: 2/77–6/78) In telegram 9435 from London, June 9, the Embassy reported that Charles Thornton “told EmbOff Muntasser had just phoned him from the Office of the Counselor of the Libyan Embassy to say that latter had received a telegram from Tripoli reporting that Libyan-Tunisian meeting is still in progress with favorable outlook and reiterating that Tunisians have agreed to drilling operations proceeding.” (National Archives, RG 59, Central Foreign Policy File, D770205–1067)
  3. Telegram 128987 to London, June 3, transmitted the text of the letter to Thornton, in which Habib wrote: “The Tunisian Government will not repeat not agree to discuss any kind of compromise with the Libyan Government as long as your rig is present in the disputed zone,” and recommended Thornton completely remove the rig. (Carter Library, National Security Affairs, Staff Material, Middle East, Subject File, Box 89, Tunisia: 2/77–6/78)
  4. The text of Veliotes’s April 29 letter was transmitted in telegram 98421 to Tunis, April 30. (National Archives, RG 59, Central Foreign Policy File, D770152–0722)
  5. An unknown hand highlighted the last two sentences of this paragraph in the right-hand margin.