208. Memorandum From Harold
Saunders of the National Security Council Staff to the
President’s Assistant for National Security Affairs (Kissinger)1
2
Washington, June 28, 1972
SUBJECT:
- Message to the Shah on the Oil Settlement—Telegram for
Clearance
Peter Flanigan recommends a
Presidential telegram to the Shah of Iran commending him for the manner
in which the Shah concluded the recent negotiations with the oil
consortium. This idea was suggested by Mr.
Jamieson, Chairman of Standard Oil of New Jersey
and negotiator with the Shah.
At Tab A is a memorandum for the President seeking his approval of this
message. If the President approves the memo at Tab A, then the telegram
at Tab B should be cleared.
RECOMMENDATION: That you seek the President’s
approval of the attached message for dispatch before your departure for California. To be timely, it should
arrive this week.
[Page 2]
Tab A
Memorandum From the President’s Assistant for National
Security Affairs (Kissinger) and the President’s Assistant for
International Economic Affairs (Flanigan) to President Nixon
Washington, undated
SUBJECT:
- Message to the Shah on the Oil Settlement
The Shah of Iran last week reached agreement with the members of the
oil consortium on a variety of measures to increase oil production
in Iran, to increase Iran’s overall oil income, to increase Iran’s
direct involvement in the petroleum operation and to extend the
companies’ role in Iran for another fifteen years beyond 1979 with
periodic review. The negotiations were tough, but the main point
from our vantage is that these negotiations were conducted in a
responsible way. In addition, the Shah has taken a different
direction from the other oil producing nations, thus weakening the
position of OPEC in its negotiations with the oil companies.
Ken Jamieson, Chairman of Standard Oil of New Jersey, and chief
negotiator with the Shah suggested this to Flanigan. This suggestion is
supported both here and in the State Department, that a message from
you to the Shah commending the manner in which these negotiations
were carried out would be an appropriate gesture. This would not
require you to make any judgment on the terms of the settlement but
would simply follow up your discussion with him on the necessity of
preserving stability in the flow of oil by letting the Shah know
that you have noted his contribution.
RECOMMENDATION: That you approve dispatch
of the following message to the Shah:
“It was with great satisfaction that I learned of the successful
conclusion of negotiations between your government and the oil
consortium member companies. Your efforts to establish a new
[Page 3]
framework for your
future relations have been of great interest to me and I have
been most impressed by the seriousness of purpose and the
pragmatic approach that have characterized the attitudes and
positions of both sides. I sincerely hope that the mutual
respect and confidence that both sides exhibited in the
negotiations will continue to characterize your relations and
that this agreement will be the basis for further cooperation to
the mutual benefit of all parties concerned. With warm personal
regards.”
Mr. Price has cleared the text.
Approve [HK for RN] Other_______
