Foreign Relations of the United States, 1969–1976, Volume E–5, Part 2, Documents on North Africa, 1969–1972

28. Telegram 113 From the Interests Section in Algeria to the Department of State¹ ²

Algiers, January 21, 1972, 1420Z

Subject:

• US/Algerian Relations

1. Summary: US/Algerian relations picked up considerably in 1971 but since September momentum has been lost because of continued delay in FPC approval of SONATRACH/El Paso LNG project. Relationship will require constant attention during this period of marking time, but once El Paso project clears FPC we anticipate new forward movement on both economic and political points.

2. During 1971 US/Algerian relations continued to improve as commercial, financial and technological links grew, American visitors were received at high levels and doors opened to American businessmen and officials. Momentum from visits by EXIMBank President Kearns and DepAsstSec Smith in February and Robert O. Anderson and Frank Borman in April was maintained by American neutrality in French-Algerian dispute and should have peaked in September when El Paso officials expected FPC approval of SONATRACH-El Paso LNG project (financed by EXIMBank loans and guarantees).

3. September came and went and Algerian officials were told FPC decision would be delayed. They assumed this meant till late 1971 or early 1972. Now, no one here mentions dates and voices grow weary when El Paso is mentioned.

4. President Boumediene claims there is no hurry re El Paso “since it is not in four-year plan (“1970–74”). At same time he has let us know that through El Paso project he “extended hand to Americans and is waiting for them to grasp it.”

5. Fact that Boumediene is reserving his judgment seems to have filtered down to some Algerian officials who are now more cautious than before in their dealings with U.S. officials. Nevertheless, US/Algerian economic relations continue to prosper as with SONATRACH’s new contracts with CORCO and ESSO. Position of USINT has also improved. We now have good access to Algerian officials as other Embassies and Chief USINT is on FonMinister’s invitation list for official dinners.

6. There is no indication that Algerian leadership has second thoughts re their stated desire to build a long-term mutually beneficial relationship. Furthermore, in spite of hostile attitude of Algerian media, GOA has as a conscious policy tried to insulate bilateral US/Algerian relations from Middle East developments and political differences elsewhere in the world.

7. Although there are grounds for satisfaction, our relationship with Algeria is still fragile and requires constant attention. If forward movement on El Paso project does not come soon there is no danger that, in absence of other gestures, Boumediene might become disillusioned and pull back. However, we can probably safely mark time for another month or two.

8. When El Paso project clears FPC there should be some improvement in atmosphere and openings toward new gas and other contracts, hopefully followed in due course by restoration of diplomatic ties.

Eagleton

1. Source: National Archives, RG 59, Central Files 1970–73, POL ALG-US. Secret. It was repeated to Cairo, Khartoum, London, Paris, Tripoli, Tunis, and Rabat.
2. The Interests Section warned the Department that, owing to the continued delay in FPC approval of the El Paso project, the momentum generated by improving U.S.-Algerian relations was slowing and that the delay could cause disillusionment in Algeria.