Foreign Relations of the United States, 1952–1954, Iran, 1951–1954, Volume X

888.2553/9–1754: Telegram

No. 494
The Acting Secretary of State to the Embassy in Iran¹

secret
priority

Washington, September 17, 1954—4:25 p.m.

549. Deptel 531 rptd London 1526² American oil companies expressed some concern Attorney General’s opinion Deptel 532 rptd London 1527 expressly restricted to agreements “in their present form and if they remain unaltered”. Koegler reported that as result Iranian requests certain changes being made in drafts which were submitted Justice. Companies confident these changes raise no anti-trust problems but desired Attorney General be advised changes being made and probably would continue be made up to moment Amini signs agreement.

Afternoon Sept 16 Attorney General approved letter to be sent by Acting Secretary to American oil companies emphasizing US Govt recognition some changes might be made prior signature in documents upon which Attorney General’s opinion Sept 15 was based and that language quoted above “was intended to preclude only such changes as might raise anti-trust questions”.³ Koegler immediately informed and stated American companies would have no further qualms re signing agreement with respect anti-trust aspects. He estimated documents would be flown from London for Amini’s signature Sept 19.

Hope you can find occasion inform Iranians and British our view that Attorney General and his Staff Anti-Trust Division deserve great credit for rapid action this complicated affair.

Smith

1. Repeated to London. Drafted by Stutesman, cleared in substance with Hoover and Ely Maurer of L, and approved by Jernegan.
2. See footnote 5, supra.
3. Acting Secretary Smith on Sept. 18 sent the letters to R. G. Follis, Chairman of the Board of Directors, Standard Oil Company of California; Eugene Holman, Chairman of the Board of Directors, Standard Oil Company of New Jersey; W. S. S. Rodgers, Chairman of the Board of Directors, The Texas Company; Sidney A. Swensrud, Chairman of the Board of Directors, Gulf Oil Corporation; and G. V. Holton, Chairman of the Board of Directors, Socony-Vacuum Oil Company, Inc. Smith informed them of the contents of the Attorney General’s letter of Sept. 15 submitted to the President (see telegram 532, supra) regarding the legality of the agreements which the Oil Consortium was prepared to enter into with the Government of Iran, and he enclosed a copy of the Attorney General’s letter to the President. (888.2553/9–1854)