800.6363/1482

The Secretary of State to the British Ambassador (Halifax)

The Secretary of State presents his compliments to the British Ambassador and refers to the Ambassador’s note of February 7, 1944 [Page 95] stating that the British Government welcomes the suggestion of the United States Government that informal exploratory discussions concerning petroleum be initiated.

It is noted that while the British Government agrees that these conversations at the outset should deal with problems of mutual interest regarding Middle Eastern petroleum, they should at a later period be extended to cover the general subject of petroleum. This Government believes that it may be found desirable to extend the scope of the conversations beyond a discussion of the problems concerning Middle Eastern oil but that a determination of whether that should be done and to what extent can be made best in the light of the progress of the discussions on Middle Eastern oil.

In compliance with the British Government’s desire for some indication of the aspects of the question which this Government believes should be discussed, there follows a tentative list of general topics which it is believed could be profitably covered in the conversations.

1.
Interests of the producing and consuming countries in Middle Eastern petroleum.
2.
The quantity of Middle Eastern oil that should flow into post war world markets.
3.
Existing impediments to orderly production.
4.
Transportation problems.
5.
Concession rights.
6.
Price and marketing policies.

It is contemplated that a group of not more than five staff members at the export level will conduct the conversations for this Government. The group will be headed by the Petroleum Adviser of the Department of State92 as Chairman and will include the Deputy Director of the Office of Eastern and African Affairs of the Department.93

It is believed to be auspicious for the outcome of the conversations that both Governments desire to reach conclusions on the basis of close cooperation. This Government strongly hopes that, in this atmosphere, the conversations can be initiated without delay.

  1. Charles B. Rayner.
  2. Paul H. Ailing.