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PRESIDENT'S SECRETARY'S FILE
Subject File
Oil Conference
Box 156
PSF
REMINDER FOR THE PRESIDENT:
You said you wished to talk with
Ed Stettinius about this today.
the
PSF.Oill Conference former 4-44
THE UNDER SECRETARY OF STATE
WASHINGTON
file friend
February 12, 1944
Dear Miss Tully,
I am terribly sorry to have to go back at
the President with the attached, but I have no
other choice under the circumstances. I am
sure you will understand.
The press will be reising the matter at
the White House and the State Department the
first of the week, and I think that B quick
decision is necessary.
Many thanks,
Sincerely yours,
THE UNDER SECRETARY OF STATE
WASHINGTON
February 2, 1944
FOR THE PRESIDENT
You will recall your instructions to serventerday on the forth-
conding writish petroleun conversations. You suggested the American
regotiating proof be mnde un no follows: - Secretary Ickee, Chairman,
the Under Secretarios of State, The and Invy and Tr. Charles Y. Vilson,
Vice Chodrann of the For Production Board.
Order to Use keen personal interest Secretary Hull has taken
in there conversations and the Importance he attached to then in view
of the Department's responsibility in the conduct of our foreign
relations, it was felt that the Secretary should be Informed of the
changes contraplated. I called his the coming cad he naired ne to
paper along to "ON the following observations in his behalf.
1. He foold it trueld be to great ulintrice to degrive the Department
of the lendership In these discussions.
2. lie to strongly assosed to conducting the discussions on other
the in writing level -15% tochnical and solitions experts who can
Invote full time to the may Intriente whilder involved.
"Ith your nurovel, he has almody family advised the British
the to convernations will be conducted at the working level with the
American proup knowled hy . Carler Promon, Petroleum Adviser of the
Department, -111 the other members - 1100. Poul Alline, Denity Director
- 2 -
of our Office of Enstern and African Affairs, and n. reprecentative
of Secretary Ickes' Petroleum Administration for Tar. He has also
informed the American petroleum industry to the name effect. Hence,
in his opinion, to change notr would be dangerous from the viewpoint
of the successful conduct of these important and difficult conversa-
tions, and it would indicate to the British as well as to our industry
n. state of confueion within the Covernment. Furthersore it would danage
the prestige of the Department of State in the discharge of its responsi-
bilities.
I mn sorry to have to raise this matter with you again but in view
of the Secretary's strong feeling on the netter, I felt certain you
would wish ne to do so. Le you know a proupt and final decision is
needed. After considering the Secretary's consents, do you rish to
change your instructions to no of yesterday?
PSF
Oil conference folder wave
THE UNDER SECRETARY OF STATE
WASHINGTON
fide
February 15, 1944
HEMORANDUM FOR THE PRESIDENT
Immedintely after our telephone conversa-
tion this morning, I discussed the natter of
the oil negotiation committee thoroughly
with Mr. lckes end he 18 perfectly satisfied
with this final solution.
PSF Osl Conference file folder 4.44
THE UNDER SECRETARY OF STATE
bazy
WASHINGTON
22
February 22, 1944
MEMORANDUM FOR THE PRESIDENT
Subject: British Petroleum Discus-
sions.
In accordance with your instructions
in our conversation this morning, I en-
close herewith a proposed message from
you to the Prime Minister.
Enclosure.
THE UNDER SECRETARY OF STATE
WASHINGTON
February 22, 1944
Dear Miss Tully:
The President urgently re-
quested that this be sent today
and I should greatly appreciate it
therefore if you would put it be-
fore him.
With best wishes,
Sincerely yours,
Enclosure. Education
Miss Grace G. Tully,
The White House.
PSF ail conference folder 4-44
ADDRESS OFFICIAL COMMUNICATIONS TO
THE SECRETARY OF STATE
WASHINGTON, D.C.
file
DEPARTMENT OF STATE
WASHINGTON
March 29, 1944
MEMORANDUM FOR THE PRESIDENT
SUBJECT: FORTHCOMING CONVERSATIONS
WITH THE BRITISH ON OIL
In accordance with the desire expressed in your
memorandum of March 24, 1944, I have advised Mr. Leo
Crowley that you wish him to be a member of the group
which will conduct for this Government the forthcom-
ing conversations with the British on oil.
CH
FORVICTORY
BUY
UNITED
STATES
RAVINGS
BONDS
AND
STAMPS
March 24, 1944
MEMORANDUM FOR THE SECRETARY OF STATE:
Through en oversight no
representative of the Foreign Economic
Administration was included in the
group named to negotiate with the
British on the Middle East papeline.
Would you be good enough to tell Leo
Crowley that I would like him to be
one of the group?
(FDR)
LC:fm
(100%)
hmo ADDRESS PICIAL COMMUNICATIONS TO
CA
THE SECRETARY OF STATE
<<<<<<<<<<<<<<<<<<<<<<<<<
PSF Ore Conference folder
4.44
WASHINGTON, D.C.
DEPARTMENT OF STATE
Bx174
WASHINGTON
MEMORANDUM FOR THE PRESIDENT
SUBJECT: FORTHCOMING CONVERSATIONS'
April 1944
WITH THE BRITISH ON OIL
I refer to your memorandum of April 5, 1944, express-
1ng concern that the British have not appointed a committee
for the forthcoming oil conversations corresponding to the
Cabinet Committee appointed by you of which I am Chairman.
Ambassador Winant reports that it is contrary to all
British custom and procedure to publish the names of Minis-
terial Committees. He also reports that the British, in
order to have their Committee rank equally with the Commit-
tee appointed by you, are faced with the difficulty of having
to send here members of the War Cabinet, including Foreign
Minister Eden and Lord Leathers, at a time when these men
are seriously involved in operational preparation for the
invasion.
Ambassador Winant reports that he has pressed this
matter as hard as possible in several conversations with
the Prime Minister and Foreign Minister Eden. He is con-
vinced that they are not attempting to evade the issue but
desire to work with us. It is his opinion that the British
will take definite action after expert groups representing
the two Governments have conducted exploratory discussions.
Accordingly, I strongly believe, and hope you will con-
cur, that we should not approach the British again at this
time concerning the Ministerial Committee but should proceed
rapidly with such exploratory discussions, and the Department
is completing the necessary plans to that end. The British
have named their group of experts who will arrive here about
April 15. This group, which is headed by Sir William Brown,
is composed of experts in foreign political and economic
policy, representatives of the Service branches and the Brit-
ish oil industry. I have named the Department's Petroleum
Adviser to head the American group of experts and I have in-
formed Secretary Ickes that it is my view that the American
group should also include two additional experts (foreign
economic and political) of the State Department, three ex-
perts from the Petroleum Administration for War, and a repre-
sentative each of the Army and Navy.
FORVICTORY
BUY
UNITED
STATES
RATINOS
CH
BONDS
AND
STAMPS
State Dept. focaer
THE WHITE HOUSE
WASHINGTON
April 5, 1944
MEMORANDUM FOR
SECRETARY HULL
I am concerned that the British
have not appointed a committee to
discuss oil with the committee which
I appointed some weeks ago, of which
you are Chairmen. I know that they
have appointed a "technical" group
which will be here shortly; but I
think that it is extremely important
that conversations begin immediately
on a policy level. Will you please
communicate with the British immedi-
ately and urge them to appoint their
representatives and to have them
over here for policy conversations
with your committee? I think they
should start not later than May 1,
and earlier would be better.
"7DR",
F.D.R.
"10 namers accorranied the ortainel of this
gemorandun to the Secreture of State.
4/5/44
I told Ketty Gilligan
that the was sent
him
THE WHITE HOUSE
WASHINGTON
April 5, 1944
MEMORANDUM FOR THE PRESIDENT.
This is that proposed
memorandum to Secretary Hull about
the British delegation on oil.
If you send it, will you
please let me know so I can tell
Secretary Ickes about it?
fn
S.I.R.
Oil conference folder 4-44
ADDRESS OFFICIAL COMMUNICATIONS TO
SECRET
THE SECRETARY OF STATE
WASHINGTON, o. c.
Give
PSF
DEPARTMENT OF STATE
Bx
WASHINGTON
May 4, 1944
174
MEMORANDUM FOR THE PRESIDENT FROM SECRETARY HULL
The enclosed draft Memorandum of Understanding on
petroleum was agreed to, on an ad referendum basis, by
the United States and United Kingdom expert groups as a
result of the exploratory discussions on oil, and was
considered on May 2 by the Committee you appointed and
of which I am Chairman. This Committee unanimously
approved the Memorandum.
In the exploratory discussions, the United Kingdom
Delegation urged that the Memorandum of Understanding
be re-enforced on two counts:
1. The British group felt that there should be
explicit recognition of the United Kingdom's dependence
upon imported petroleum supplies and that therefore
there should be special assurances of ample supplies to
the United Kingdom for its national security and in-
dustrial and commercial well-being. The American expert
group felt that the prime purpose of the Memorandum is
to assure ample oil supplies to all countries and that
would policy. be in conflict with our established commercial
By RHP Data 5-30-72
State Dept.
DECLASSIN
any specific further assurance for the United Kingdom
2. The United Kingdom group urged that the two
Governments should agree not merely to respect but also
to support all valid concession contracts. This further
commitment would have obligated the United States Govern-
ment to take joint action with the British vis-a-vis
third governments regarding the validity of contracts,
11-72
and the American group was not authorized to consider so
broad a commitment.
We understand that when the British Delegation pre-
sents the draft Memorandum to the Cabinet Committee,
they will urge that the second of these points be pressed
again at a higher level. It is thought unlikely that
there will be further pressure for special assurances of
supplies for the United Kingdom.
FORVICTORY
Enclosure:
BUY
UNITED
STATES
Draft Memorandum
C
BONDS
AND
of Understanding.
STAMPS
STORET
SECRET
April 29, 1944
MEMORANDUM OF UNDERSTANDING "ITH THE UNITED KINGDOM ON PETROLEUM
Preamble
The Governments of the United States and the United
Kingdom, whose nationals hold, to a substantial extent
jointly, rights to explore and develop petroleum resources
in other countries, recognize:
1.
That ample supplies of petroleum*, available in
international trade to meet increasing market
demands, are essential for both the security and
economic well-being of nations;
2.
That for the foreseeable future the petroleum
resources of the world are adequate to assure
the availability of such supplies;
By FAP Data 5-30-72
State Dept. 1-11-72
DECLASSIFING
3.
That such supplies should be derived from the
various producing areas of the world with due
consideration of such factors as available re-
serves, sound engineering practices, relevant
economic factors, and the interests of producing
and consuming countries, and with a view to the
full satisfaction of expanding demand;
4.
That such supplies should be available in accord-
ance with the principles of the Atlantic Charter.
I
The two Governments agree that the development of
petroleum resources should be expanded in an orderly manner
on a world-wide basis with due consideration of the factors
set forth in paragraph 3 of the Preamble and within the frame-
work of applicable laws or concession contracts. To this end
they will concert their efforts to ensure, with respect to
petroleum resources in which rights are held or may be ac-
quired by the nationals of either country,
1.
That petroleum shall be available in international
trade to the nationals of all peace-loving countries
in adequate volume, at fair prices and on an equit-
able and nondiscriminatory basis;
2. That
*
"Fetroleum" throughout this document is used to signify crude
petroleum and its derivatives.
-2-
2.
That the development of petroleum resources and
the benefits received therefrom by the producing
countries shall be such as to encourage the sound
economic advancement of those countries;
3.
That the development of these resources shall be
conducted with a view to the availability of ade-
quate supplies of petroleum to both countries as
well as to all other peace-loving countries, sub-
ject to the provisions of such collective security
arrangements às may be established;
4.
That, with respect to the acquisition of explora-
tion and development rights in areas not now under
concession, the principle of equal opportunity shall
be respected by both Governments;
5.
That the Government of each country and the nation-
als thereof shall respect all valid concession con-
tracts and lawfully acquired rights, and shall make
no effort unilaterally to interfere directly or in-
directly with such contracts or rights;
6.
That the exploration for and development of petro-
leum resources, the construction and operation of
refineries and other facilities, and the distribu-
tion of petroleum shall not be hampered by restric-
tions imposed by either Government or its nation-
als, inconsistent with the purposes of this Memo-
randum of Understanding.
II
The two Governments recognize that the principles de-
clared in Article I hereof are of general applicability and
merit adherence on the part of all nations interested in the
international petroleum trade of the world.
Therefore, with a view to the wider adoption and effec-
tuation of the principles embodied in this Memorandum of
Understanding they agree that as soon as practicable they
will propose to the governments of other interested producing
and consuming countries an International Petroleum Agreement
which, inter alia, would establish a permanent International
Petroleum countries. Council composed of representatives of all signatory
To this
-3-
To this end the two Governments hereby pledge themselves
to formulate plans for an international conference to consider
the negotiation of such a multilateral Petroleum Agreement.
They also pledge themselves to consult with other interested
governments with a view to taking whatever action is neces-
sary to prepare for the proposed conference.
III
There are, however, numerous problems of joint immedi-
ate interest to the two Governments, with respect to petro-
leum resources in which rights are held or may be acquired
by their nationals, which must be discussed and resolved on a
cooperative interim basis if the general petroleum supply
situation is not to deteriorate.
With this end in view the two Governments hereby agree
to establish a Joint Petroleum Commission to be composed of
ten members, five members to be appointed immediately by each
Government. This Commission, in furtherance of and in accord-
ance with the principles stated in Article I hereof, shall
consider problems of mutual interest to both Governments and
their nationals, and, with a view to the equitable disposi-
tion of such problems, shall be charged with the following
duties and responsibilities:
1.
To prepare long-term estimates of world demand for
petroleum, having due regard for the interests of
consuming countries and expanding consumption re-
quirements,
2.
To suggest the manner in which, over the long term,
this estimated demand may best be satisfied by pro-
duction equitably distributed among the various
producing countries in accordance with the criteria
enumerated in paragraph 3 of the Preamble,
3.
To recommend to both Governments broad policies
for adoption by operating companies with a view
to effectuating programs suggested under the pro-
visions of paragraph 2 above,
4.
To analyze such short-term problems of joint interest
as may arise in connection with production, process-
ing, transportation and distribution of petroleum
on a world-wide basis, wherever the nationals of
either
-4-
either country have a significant interest, and
to recommend to both Governments such action as
may appear appropriate;
5.
To make regular reports to the two Governments
concerning its activities;
6.
To make, from time to time, such additional reports
and recommendations to the respective Governments
as may be appropriate to carry out the purposes
of this Memoran dum of Understanding.
The Commission shall establish such organization as
is necessary to carry out its functions under this Memoran-
dum of Understanding. The expenses of the Commissi on shall
be shared equally by the two Governments.
IV
To effectuate this Memorandum of Understanding the two
Governments hereby grant reciprocal assurances:
1.
That they will adhere to the principles set forth
in Article I, paragraphs 1 to 6 inclusive,
2.
That they will endeavor to obtain the collabora-
tion of the governments of other producing and
consuming countries in the implementation of the
principles set forth in Article I, and will consult,
as appropriate, with such governments in connec-
tion with activities undertaken under Article III,
3.
That upon approval of the recommendations of the
Commission they will endeavor, in accordance with
their respective constitutional procedures, to
give effect to such approved recommendations
and, wherever necessary and advisable, to ensure
that the activities of their nationals will con-
form thereto,
4.
That each Government vill undertake to keep itself
adequately informed of the current and prospective
activities of its nationals with respect to the
development, processing, transportation and distri-
bution of petroleum,
5.
That each Government will make available to the
Commission such information regarding the activities
of its
-5-
of its nationals as is necessary to the realiza-
tion of the purposes of this Memorandum of Under-
standing.
V
This Memorandum of Understanding shall continue in force
until six months after notice of termination by either Govern-
ment or until superseded by the International Petroleum Agree-
ment contemplated in Article II.