Foreign Relations of the United States, 1964–1968, Volume XXI, Near East Region; Arabian Peninsula

299. Telegram From the Department of State to the Embassy in Saudi Arabia¹

Washington, August 4, 1967, 2232Z.

16312. Jidda 274 (Notal).²

1. Aramco representative here in brief talk with DeptOff August 4 characterized MinPet Yamani meeting New York area August 1 with Aramco parents³ as “devoted oil, not politics”. Yamani apparently did reiterate in plain terms his view that USG has lost much ground in Arab world which will take considerable time recover. However, most of discussion devoted oil problems⁴ which representative promised go over with DeptOff on basis written record meeting when this received from New York.

2. Re Tapline, Aramco rep said line still closed despite activation IPC line for all exports except US, UK and GFR. Speculated one reason Saudi go-slow policy may be SAG desire make clear it “doing more” for Arab cause. Chief reason, however, is no doubt Yamani interest in what would amount to “bonus” for permitting resumption Tapline operations. Representative indicated Aramco parents had manifested no receptivity to Yamani discussion this point.

3. So far there seems have been no publicity Aramco/Yamani meeting which all parties continuing handle on most discreet basis.

Rusk

1. Source: National Archives and Records Administration, RG 59, Central Files 1967-69, POL 27 ARAB-ISR. Secret; Noforn. Drafted by Brewer, cleared by Deputy Director of the Office of Fuels and Energy in the Bureau of Economic Affairs James E. Akins and David L. Gamon (NEA/ARN), and approved by Battle. Repeated to Dhahran and Beirut.
2. Dated July 22. (Ibid.)
3. Telegram 163 from Jidda, July 13, reported tentative plans for Yamani to meet with Aramco board members in the New York area July 24 or 25. (Ibid.)
4. Most oil-producing nations in the Middle East, including Saudi Arabia, had embargoed oil shipments to the United States and the United Kingdom immediately following the Six-Day War. Telegram 163 stated that Aramco had informed Yamani that the estimated loss of revenue to the Saudi Arabian Government from continuation of the embargo on oil exports to the United States and the United Kingdom would be $9 million per month; from continued stoppage of the Tapline, $1.5 million per month. Aramco had also pointed out that even after the Saudi embargo was lifted, it might take some time before normal contracts could be resumed.