Foreign Relations of the United States, 1952–1954, The Near and Middle East, Volume IX, Part 1

886A.2553/2–654

No. 330
The Acting Secretary of State to the Embassy in Saudi Arabia¹

confidential

Washington, February 13, 1954.

244. Embtel 333.² Aramco has provided Department text letter written by its representative to Finance Minister February 8 stating objectionable implications tanker agreement concluded with Onassis. Department considers these considerations entirely valid and feels in addition implementation of agreement would be detrimental to U.S. interests through restriction imposed on Navy tankers pick up substantial quantities Saudi oil purchased by U.S. Government. (This restriction would also seemingly harm Saudi interest through eliminating certain sale outlets.)

Although Department believes initiative in this matter should be left for time being in Aramco’s hands, it feels U.S. Government should give general support to Aramco at this juncture. Ambassador accordingly authorized at his discretion inform Finance Minister our serious concern over implications agreement.

Should Aramco’s discussions with SAG prove unsuccessful Department believes consideration should be given to forceful appeal to King by Ambassador.³

Department will appreciate full reports this matter and recommendations concerning procedure.

Smith

1. Drafted by Fritzlan and cleared by PED. Repeated to Dhahran.
2. Supra.
3. This recommendation, and the ones in the preceding paragraph, were originally suggested in a memorandum by Hart to Byroade, dated Feb. 10, not printed. A handwritten note next to the recommendations in the memorandum noted that they had been sent to the Ambassador. (886A.2553/2–1054)