Office of the Historian

893.6363/6–2849: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Douglas)59

Washington, October 19, 1949—7 p. m.

3770. Deptel 2183, June 24, Embtels 2470, June 27 and 2485, June 28 (not repeated Shanghai). Emb shld informally convey FonOff substance following for their info:

Mid-East Crude Sales Co. has contracted through Caltex to supply Chinese Petroleum Corp 75,000 to 150,000 tons Arabian crude oil during calendar year 1950 for delivery f.o.b. tankers at Ras Tanura, Saudi Arabia. Payment to be made in dollars prior to shipment, affiliate of Mid-East to provide tankers for delivery to Shanghai and/or Hulutao. Contract signed on flexible basis which permits termination on short notice per FonOff suggestion (Embtel 2485).

For Emb and ConGen info only[,] contract signed without full knowledge and approval of Dept. Mid-East had previously discussed 6-to 9-month contract with Dept, was advised by Dept 3-month contract preferable. Co. rep states 1-year contract necessary since CPC unwilling consider shorter term and Anglo-Iranian offering contract on that basis.

Acheson
  1. Repeated to the Consul General at Shanghai as No. 2124.↩