Office of the Historian

886A.2553/8–3150: Telegram

The Secretary of State to the Embassy in London 1

secret
Washington, August 31, 1950—7 p. m.

1157. For urinfo, SAG demanding complete renegotiation of 1933 Aramco concession contract. Aramco Board has authorized Pres Moore to discuss renegotiation with SAG. Revision contemplated by SAG cld be expected to have obvious repercussions on other contracts in area, particularly since key issue appears to be Saudi Arab demand for [Page 76] income tax for which co. might obtain US Treas tax credit. No NE concessionnaire now pays local income taxes.

Acheson
  1. Repeated to Tehran as 391, Baghdad as 88, Jidda as 80, Moscow as 168, and Cairo as 174.↩