275. Telegram From the Embassy in the United Kingdom to the Department of State1
3015. Middle East pipeline. Some senior American oil officials in London in recent weeks have been informing Embassy officer that the international oil companies no longer interested going ahead Metline proposal. Until Turkey–Syrian crisis Shell only holdout against this point of view but understand Shell now agrees attitude other companies. Main reasons project no longer of interest reported to be as follows:
- (a)
- Convinced neither HMG or USG willing attempt negotiate treaty protection considered essential oil companies (although [New] Jersey attempting revision “C–type” treaty at Department’s suggestion, this now purely academic exercise).
- (b)
- Reassessment economic considerations have led conclusion not warranted.
- (c)
- Some companies never from outset were particularly enthusiastic and have had opportunity these months “work over” colleagues.
FonOff seemed to be generally aware above. Has informed some companies and Embassy that despite decision oil companies, would hope no public announcement to this effect would be made as believe it desirable possibility this project be kept alive as insurance protection.
- Source: Department of State, Central Files, 880.2553/11–1357. Confidential.↩