Foreign Relations of the United States, 1969–1976, Volume XXIV, Middle East Region and Arabian Peninsula, 1969–1972; Jordan, September 1970

103. Memorandum of Conversation¹

London, July 20, 1971.

SUBJECT

• US/UK Bilaterals July 20—Persian Gulf

PARTICIPANTS

• Sir Alec Douglas-Home, British Secretary of State for Foreign and Commonwealth Affairs
• John N. Irwin II, Under Secretary of State

Sir Alec said that after endlessly patient negotiating by Sir William Luce, it appeared that a union of 6, or perhaps 7, might be formed.² Bahrain and Qatar will probably stay independent. This would be a satisfactory outcome for the British, but they still had “mild trouble” on two counts: Faisal’s continued opposition (Faisal would accept a Federation of 9, but not of 7), and the islands. Faisal has succeeded in frightening Bahrain somewhat, but he thought they would go through with independence.

On the islands, Sir Alec said the Shah seemed determined to brook no compromise: he not only insisted on having the islands, but wanted the British to deliver them. The British could find no way of doing so without bringing down the wrath of the Arabs on their heads. It was now conceivable that the Shah might attempt to seize the islands before British withdrawal.

The Under Secretary asked about the scheme that had once been talked about of having an Iranian military presence on the islands with the issue of sovereignty being fudged, at least initially. Luce said the British were presently negotiating with the Iranian Ambassador in London. The two rulers (Shah and Faisal) have agreed that there can be an Iranian military presence. What the Arabs have not as yet accepted is the cession of sovereignty to Iran, and whether or not the question is publicly mentioned. The British were now talking to both sides about the length of the interim period before the rulers would withdraw the token police force, and the further interim period during which the sovereignty issue would be fudged. Sir Alec said he thought some solution still possible but noted that the Shah’s position has been getting harder over the past few months. Sir Alec suggested that the Shah had had too great a success in the oil negotiations and this had gone to his head. Godber asked what the US proposed be done. The Under Secretary indicated we hoped the British would be able to work out some solution.

The Under Secretary asked about the Shah’s attitude on oil and economic aid. Luce confirmed that the Shah is prepared to be generous: but the difficulty for the Arabs is in appearing to sell out Arab interests. The formation of a union may help in this respect by shifting at least part of the onus to seven rather than two.

Sir Alec said that Britain is continuing to work for a compromise. He wondered what advice the US is giving the Shah. The Under Secretary said we are continuing to urge him to reach a compromise solution: the results for everyone, including Iran, would be better than an arbitrary takeover.

In closing, Sir Alec repeated it is conceivable that the Shah might decide to move before the British are out. He said the Shah calculates that there would be no reaction if he seizes the islands. Shaking his head, Sir Alec said “I’m not sure he’s right.”

1. Source: National Archives, RG 59, Central Files 1970–73, POL UK–US. Confidential; Limdis. Drafted by B. Scott Custer and approved on July 30 in U. This is Part 8 of an 8-part memorandum of conversation that recorded discussions on the Middle East, Southeast Asia, and Europe. Parts 1–7 are not printed.
2. On July 18, after a week-long meeting in Dubai, the seven Trucial States announced agreement on the establishment of a federation to take place before the British military withdrawal from the Persian Gulf. The federation would have a Supreme Council, a cabinet, and a legislature, with Sheikh Zayid of Abu Dhabi the most likely first president of the new United Arab Emirates. Ras al-Khaimah refused to sign the agreement due to disagreement over representation in the legislature. On October 1 Saunders and Neaher informed Kissinger that the British did not respond to the Dubai announcement because they were working on the island dispute and because Iran had perceived the Dubai announcement as British manipulation. (President’s Saturday Briefing Paper, October 1; ibid., Nixon Presidential Materials, NSC Files, Box 1276, Saunders Files, Persian Gulf) Telegram 1286 from Dhahran, October 1, summarizes the status of the six-member federation, emphasizing their determination to declare independence by year’s end. (Ibid.)