611.874/9–550

The Ambassador in Iraq (Crocker) to the Secretary of State

confidential
No. 251

Subject: Treaty of Friendship, Commerce and Navigation

The Department’s instruction No. 5 of August 9, 1950,1 referring to negotiations for a Treaty of Friendship, Commerce and Navigation currently being conducted between representatives of the United States and various other countries, including Near Eastern countries and transmitting for the Embassy’s information, two copies of a typical standard draft of a Treaty of Friendship, Commerce and Navigation, has been received.

The Embassy has noted that the United States Government is currently conducting a world-wide program of negotiating treaties of Friendship, Commerce and Navigation;2 such treaties being designed to replace outmoded and inadequate treaties such as the Treaty of Commerce and Navigation entered into between the United States and Iraq, on December 3, 1938,3 which it is felt should eventually be replaced and modernized.

In compliance with the Department’s instructions in the premises, the Embassy has endeavored discreetly to elicit the views of the Minister of Finance, Abdul Karim Al-Uzri, by discussing with him, in general terms, the economic development of Iraq and the possible steps which his Government might be prepared to consider to encourage the flow of United States private capital in Iraq by granting to American investors the usually required minimum guarantees necessary to safeguard their capital. The Minister eventually asked what types of guarantees or assurances other Moslem countries, such as Pakistan for example, may have given or may be expected to give to private American investors. The reporting officer said he did not know, however, he thought that several treaties of Friendship, Commerce and Navigation recently concluded between the United States of America and various other countries, might contain clauses appertaining to assurances in the premises, which probably could be considered adequate to safeguard private American investments in those foreign countries. Adding that, if his memory served, the existing treaty of Commerce and Navigation, which was concluded between [Page 650] the United States and Iraq in 1938, does not have such a clause and, therefore, may be outmoded in that respect.

At the Minister’s request, a second meeting was arranged, following perusal of the 1938 Treaty of Commerce and Navigation, which, of course, was found to be inadequate for the purpose of the discussion. This realization prompted Abdul Karim Al-Uzri to informally express his views to the Embassy’s representatives, substantially as follows:

1.
We are most anxious to avail ourselves to the fullest extent possible of assistance to under-developed countries under the Point IV program and/or its corollaries therefore,
2.
It is unfortunate that a document more comprehensive than the Treaty of Commerce and Navigation with the United States, which we have just considered, does not exist because,
3.
Owing to the political climate now prevailing in Iraq, I think I am expressing the feeling of my colleagues in the Cabinet in saying that it would be highly inadvisable for any Government in Iraq, at this particular time, to re-negotiate any existing treaty or to enter into any new treaty with “certain foreign powers.” The “potential” political opposition to any one agreement, such as a Treaty of Friendship, Commerce and Navigation, may not necessarily stem from an objection to the proposed treaty itself, but rather to the word “treaty”, which has an unhappy political connotation, in the minds of Iraqis, with another and altogether unrelated treaty, i.e., the Portsmouth Treaty, negotiated in 1947, to replace the Anglo-Iraqi Treaty of Friendship and Alliance, but which had to be abolished (owing to political demonstration and bloodshed) shortly after its publication. At this time, the mere mention or reference to The Portsmouth Treaty is an anathema to some of our people.
4.
An added consideration is the fact that a basic policy of the Iraqi Government is to strictly enforce our economic boycott of Israel, therefore, we could not consider the possibility, at this time, of entering into any treaty of any kind which might even remotely weaken our position in that respect.
5.
I think you will find this cabinet, or any subsequent cabinet, willing to give any specific individual guarantee required for the protection of American capital which may eventually be invested in Iraq, but the possibility of entering into a formal agreement in the premises based on broad rather than specific principles is, in my opinion, out of the question at this time.

Embassy Comments:

Abdul Karim Al-Uzri is intelligent, capable, honest, sincere and sensitive to public opinion and needs. His views, which were elicited indirectly, have the merit and value of spontaneity.

The Embassy, therefore, does not propose to continue to explore the possibility of negotiating a Treaty of Friendship, Commerce and Navigation with Iraq, unless otherwise instructed by the Department.

Edward S. Crocker
  1. Not printed.
  2. For documentation concerning the program of the United States to modernize its treaties of friendship, commerce and navigation, see Foreign Relations, 1949, vol. i, pp. 631 ff.
  3. For text, see Department of State Treaty Series (TS) No. 960, or 54 Stat. 1790.