Office of the Historian

Conference files, lot 59 D 95, CF 139

No. 383
Communiqué on the United States–United Kingdom Political Talks
Washington, March 7, 1953.

In addition to the discussions on economic and financial problems,1 the Foreign Secretary, Mr. Eden, and Secretary of State [Page 920] Dulles discussed the international political developments that have taken place since their conversations in London early in February.

1.
They exchanged views regarding developments in the Soviet Union.
2.
With respect to Europe, particular attention was given to the subject of the proposed treaty for a European Defense Community. Both the United States and United Kingdom Governments are concerned that the treaty be ratified as speedily as possible, so as to provide further continental unity which is essential to the most effective operation of the North Atlantic Treaty Organization.
3.
They also considered the situation in the Middle East with particular reference to the major problems in the area, and were in agreement on the urgency of furthering constructive solutions in the interest of all concerned.
4.
With respect to Iran, Mr. Eden said that Her Majesty’s Government were decided to stand on the proposals presented to Prime Minister Mossadegh on February 20, 1953.2 These proposals were the result of many conversations and careful study of all the factors involved. In the opinion of the United States Government these proposals are reasonable and fair. If agreed to:
(a)
Iran would retain control of its own oil industry and of its own oil policies.
(b)
The problem of compensation would be disposed of in such a way that there would be no sacrifice of the principles which form the very basis of international intercourse among free nations, and the payment of compensation would be fully compatible with the rehabilitation of Iran’s economy.
(c)
Iran would have full opportunity to enter into arrangements whereby it could sell its oil in substantial quantities at competitive commerical prices in world markets.
(d)
There would be placed at Iran’s disposal sufficent funds, to be repaid in oil, to meet its immediate financial problems pending resumption of the flow of revenue from its oil industry.
5.

The two Secretaries of State also considered the Far Eastern situation. They reaffirmed the importance of preventing the shipment of strategic materials to the mainland of China. Mr. Eden stated that Her Majesty’s Government in the United Kingdom, in addition to the system of controls already in force, had decided:

(a)
To introduce a new system of licensing vessels registered in the United Kingdom and Colonies so that strategic materials from non-British sources could not be carried to China in British ships;
(b)
To take additional steps designed to ensure that no ships of the Soviet bloc or other nationality carrying strategic cargoes to China should be bunkered in a British port.

[Page 921]

The United States and British Governments will concert their efforts to secure the cooperation of other maritime and trading nations in the measures designed to exclude the shipment of strategic materials to the mainland of China.

6.
Under arrangements made for the common defense the United States has the use of certain bases in the United Kingdom. The prior understanding was confirmed that the use of these bases in an emergency would be a matter for joint decision by Her Majesty’s Government and the United States Government in the light of the circumstances prevailing at the time.
  1. For documentation on the economic and financial talks, see Documents 384 ff.↩
  2. Documentation on the British proposals of Feb. 20, is scheduled for publication in volume x.↩