888.2553/6–1554: Telegram
No. 476
The Ambassador in the United Kingdom
(Aldrich) to the
Department of State1
secret
London, June 15, 1954—7
p.m.
5750. Limited distribution. From Hoover.
- 1.
- At large meeting in Foreign Office attended by representatives all members consortium, all interested departments British Government and by Embassy representatives, Page (as spokesman) negotiating group outlined consortium position on principal points of interest.
- 2.
- Consortium has agreed serve as agent NIOC Iranian Government subject to definition of agent and principal as indicated in [Page 1029] document previously summarized in Embassy telegram 5616 repeated Tehran 254.2
- 3.
- Consortium will seek agreement for British holding company, Dutch operating companies and British service company, latter to take care purchases, engineering, etc.
- 4.
- In response to question whether consortium would go further on volume of production, Page answered a little but not much, also would not guarantee annual payments but would guarantee rate per ton. He stated no member company willing make advance payments and consortium hopes governments can deal with this problem. Consortium might under some conditions be willing raise royalty oil percentage but hopes to avoid this on grounds no disadvantage to Iran in lower figure and some advantage to consortium.
- 5.
- British Treasury representative explained main points UK-Iranian currency understanding in course of which asked in what currency consortium expected make local currency purchases. When told sterling would be used, said this satisfactory. He offered assist consortium if it ran into difficulty on the question of the sterlingrial exchange rate since Treasury considers its understanding with Iran on this point satisfactory.
- 6.
- Consortium raised question whether some specific basis for diplomatic protection for consortium interests would be negotiated perhaps by exchange of notes between Iranian Government and government’s consortium members. British said they working on this. We said would refer matter to Department (London’s 5748 to Department, 262 to Tehran June 15).3
- 7.
- On publicity, agreed only say consortium representatives departing Saturday. Statement for use on arrival would be coordinated beforehand with Tehran. No response to other inquiries at this stage.
- 8.
- I leave London for Tehran morning June 16, stopping Geneva en route several hours. Consortium leaving London evening June 19, arriving Tehran following morning.
Aldrich