'File 5/14 Continental shelf and marine area' [‎8r] (15/286)

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7. As regards the future procedure mentioned in you
paragraph 9, the negotiations which certain oil companies
have already started with the Saudi Arabian Government have,
we feel, forced our hand over the Continental Shelf and the
principles of our ^oint approach must clearly be settled as
soon as possible. We think that any attempt to settle the
disputed boundaries before we informed the rulers of the
Arab States,and we and the United States Government Jointly
or in concert infommed the Governments of Iraq and Saudi
Arabia, would hold up proceedings indefinitely.
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8. On the further question of the action to be taken
once Anglo-American policy has been defined, we are of the
opinion that, if His Majesty*s Government and the United States
Government were to make a public accouncement as suggested, be
fore the rulers concerned had made a formal assertion of
sovereignty, an opportunity Y/ould be afforded to the Persian
Government to take forestalling action. To prevent this we
feel that the first public action should be the declaration
of sovereignty by the rulers. This would mean that we and
the Americans would suggest this course to the Saudi Arabians
and Iraqis and that we should arrange for the Sheikhdoms
under our protection and Miixtsx Muscat to make a general
assertion of sovereignty over the area of the continental
shelf between the median line and the limit of their
territorial waters. In the case of the 'rucial Sheikhs the
process of explaining what is required of them and getting the
required declarations Issued may take some little time. <Ve
are looking into this question further but are inclined to
think that some delay on their account is probably inevitable
since they would in any case have to be told what was proposed
for them. His Majesty's Government and the United States
Government could immediately after make an announcement of
their policy in the matter. • We think it is unlikely that this
procedure would favour some companies more than others. In
their own interest the rulers will not grant additional
concessions without giving full opportunity to all comers to
make their bids.
9. The State Department have also asked whether His
Majesty's Government have finally adopted or are likely to
adopt the principle of the Continental Shelf for sea-bed
areas in general. We cannot commit ourselves to a definite
assurance that we should follow this principle In all cases
which might aflse in future, which are infinitely varied.
We have, however, followed this doctrine in the two cases that
have a risen in the Bahamas and Majaica and are proposing to
apply it in the Western Atlantic and the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. . For
your information, we should not be able to give a more
definite acceptance of the principle without consulting the
^ Commonwealth Governments. We, of course, mean the principle
as originally expressed in President Truman's proclamation
which, when property applied, has the effect of excluding from
any division at all the sea-bed where the sea is is so deep
that so far as can be seen at present there is no practical
teason for dividing it and not the extensions of this principle
which have been put forward by various Latin-American States,
extensions against which we have in most cases formally
protested.
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