147


U.S, PETROLEUM POLICY IN THE NEAR EAST


would constitute British recognition Egypt's violation of 1888 Suez
Canal agreement. (Burrows pointed out he had-not proposed the two
questions should be tied up in this fashion. Foreign Office would
merely rely on publicity value of Israeli statement, hoping it would
make Egypt more amenable permit passage tankers.)
  2. Burrows stated that in light US and French views re unlikelihood
any success persuading Israel make statement for free port proposal,
Foreign Office would wish reconsider this aspect of problem and would
give us its views later. Meanwhile, Foreign Office and company pro-
ceeding with remainder of program. First Western Hemisphere tanker
due arrive Haifa about September 18 and plans are proceeding load
Persian Gulf tankers which are now scheduled arrive shortly before
that date. Foreign Office looking into this question in order arrange
simultaneous arrival as originally planned.
   3. Burrows attention was directed to numerous recent articles in
 British press emanating from Tel Aviv to effect Israeli Government
 applying pressure on company to reopen refinery, with attendant
 threat take refineries over and operate them itself in event company
 does not do so. Burrows stated that UK chArg6 Tel Aviv has been
 told by Israeli Foreign Office to take no notice these press statements-
 Burrows admitted, however, press statements are worrying him since
 now it will appear that HMG has been forced take action by Israelis.
   Sent Department 3333; repeated Baghdad 77, Cairo 118, Paris 645,
 pouched Haifa.
                                                           Do0JGLAS

 501.BB Palestine/9-949 Telegram
   The Charge in the United Kingdom (Holmes) to the Secretary
                              of State

 SECRET                          LONDON, September 9, 1949-7 p. m.
    3648. Embtel 3607 September 8.' Sheringham 2 said today Foreign
  Officer has decided approach King Farouk in advance regarding
  passage tankers through Suez. Decision pursue matter this high level
  occasioned by fact it was King who decided against admission Israeli
  member WHO 3 and who might, therefore, be deciding factor this
  case.
    Approach will stress following factors:
    1. West Europe requires products Ha-ifa refinery to hasten recovery.

    Not prin'ted.
    J. G. T. Sheringham, desk officer in the British Foreign Office for Israel
and
  Arab refugee matters.
    ' Telegram 3607 noted that the Egyptian cabinet had divided on the question
  of visas for the Israeli Delegation to a regional conference of the World
Health
  Organization (501.BB Palestine/9-849).