886A.2553/11–354
No. 371
Memorandum of Conversation, by the
Officer in Charge of Arabian Peninsula–Iraq Affairs (Fritzlan)
Subject:
- Onassis Agreement Developments
Participants:
- Mr. Duce, Aramco
- Mr. Chapman, Aramco
- NE—Mr. Hart
- NE—Mr. Gay
- NE—Mr. Fritzlan
Mr. Hart outlined a suggestion made by Mr. Niarchos on November 1 to the effect that Aramco consider making a statement that, whatever the outcome of arbitration proceedings, Aramco would not agree to do business with Onassis because of serious doubts cast upon his integrity. Mr. Duce expressed the view that such an approach at this time would perhaps do more harm than good. Mr. Duce stated, however, he was seriously considering sending a message [Page 862] to King Saud through the Saudi Ambassador in Washington explaining in some detail why Onassis is generally considered an unsavory character.
Mr. Duce showed a telegram which had just come in from Mr. Davies in Jidda. The telegram summarized talks with Saudi officials and Onassis which were inconclusive. Mr. Davies and Mr. Ray are expected to return in the near future to the United States for talks with company officials.
Mr. Duce stated that he understood that Ambassador Wadsworth had recently had a talk with the King concerning the Onassis matter. He was told the Department had not yet received a report of any such meeting.
Mr. Duce expressed some doubt as to the desirability of proceeding with arbitration proceedings, feeling apparently that Aramco’s case in arbitration might not be as strong as company lawyers have described it. It was generally agreed that arbitration per se would not necessarily settle the basic issue involved.