Foreign Relations of the United States, 1969–1976, Volume XXXVII, Energy Crisis, 1974–1980

229. Telegram From the Department of State to Selected Diplomatic Posts¹

Washington, August 11, 1979, 1935Z.

209699. Subject: EC–9 Gulf-Arab Dialogue. Ref: Paris 25428; Jidda 5824 and previous.²

1. In discussions with both EC–9 and Gulf governments, addressees should understand that, despite the problems which could flow from proposed dialogue, it is not US policy to oppose it. EC countries have long felt frustration at their perceived inability to maintain effective bilateral dialogue with producer governments on energy issues and we believe it is important that we not appear to be seeking to discourage in any way their present effort toward a collective discussion.

2. What is important is that EC governments remain in close contact with us and that they understand the problems in permitting the agenda for such a dialogue to include political questions related to Middle East peace negotiations. Paris reftel is encouraging in this respect.

3. US posture described above in no way reflects change in our opposition to tied oil agreements between OECD governments and OPEC producers. In this connection it would be useful to understand what French have in mind (Paris reftel) by focus on European oil supply and how to pay for it.³

Cooper

1. Source: National Archives, RG 59, Central Foreign Policy Files, [no film number]. Confidential; Immediate. Drafted by Twinam; cleared by Hormats, Vest, and Deputy Assistant Secretary of Energy for International Resources Peter Borre; and approved by Cooper. Sent to all the OECD capitals, Kuwait, Jidda, Abu Dhabi, Manama, and Muscat, and repeated to Tokyo and Tehran.
2. Telegram 25428 from Paris, August 9, reported: “The EC 9–Gulf oil dialogue is now being handled as a joint Kuwaiti-French proposal. According to a Quai source, the most probable format involves an informal meeting during October in Europe of Energy Ministers from the Nine, including EC Commission, and all Gulf Arab states including Iraq and Oman. The French and Kuwaitis agree the primary focus of the meeting should be how to finance European oil imports.” (Ibid., D790361–0661) Telegram 5824 from Jidda, August 9, reported that the foreign press and diplomatic missions in Saudi Arabia had begun to conclude that an effort to form an EC–Arab economic and security relationship was underway. The Embassy concluded, however, that Saudi Arabia’s “reliance” on its special relationship with the United States made “any dramatic turn toward Europe” by the former “unlikely.” (Ibid., D790360–0930) Belgium, West Germany, France, Italy, Luxembourg, the Netherlands, Denmark, Ireland, and the United Kingdom comprised the EC–9.
3. On August 28, Cooper met with Yamani and told him that, regarding the “EC–9/Gulf producers exercise,” the United States was not opposed to the “development of a constructive dialogue between producers and consumers,” but that it was “not in the lead in calling for such discussions.” He added that the United States was “satisfied” with its “bilateral dialogue on energy questions with a number of important producers including Saudi Arabia.” (Telegram 228972 to all OECD capitals, August 30; ibid., D790397–0952)