"ملف ٥/٢ VI المنطقة المُحايدة في الكويت" [و‎‎١‎٧‎٦] (٧٠٢/٣٥١)

No.132
374/23A9
British Embassy,
J hj’D^h.
C ONFIDENTIAL Hth July, 1949.
Sir,
With reference to Bahrain despatch No.55(52/55/49)
of the 2/th June, I have the honour to inform you that
information here sug L ests that Mr.MacPherson's resignation
from the Arabian American Oil Company is likely to have
been principally due to friction resulting from changes
in the balance of power between the various American oil
companies who participate in the Arabian venture.
2. Mr. MacPherson was originally employed by the
Standard Oil Company of California, who owned all the
shares in the Arabian American Oil Company at the time
when the latter was formed. That holding has now dwindled
to one of about ten per cent, and I understand that the
other participating companies have been pressing for some
time for some re-allocation of executive posts to take
account of the changes in the financial holdings. Whether
there was.any demand for the removal of Mr. MacPherson, )
who was respected by all and feared by some, I do not know,
out the stresses existing in the Company may well have had
some part in Mr. MacPherson’s decision to change horses
when the possibility of employment with the .American Inde
pendent Oil Company presented itself.
3. I underaiand also that Mr. MacPherson was opposed to
the company's decision to cut back production to a daily
rate of 500,000 barrels as he believed that development
ought to be pushed ahead and that additional oil could be
sold for sterling.
4. Whatever the cause, his abrupt resignation apparently
came as a complete surprise not only to the United States
Ambassador here but also, I believe, to Arabian American
Oil Company itself, and his post remained unfilled for some
weeks. I learned a few days ago that a Mr. F.A. Davies will
shortly be coming from Arabian American Oil Company's head
office in the United States to replace Mr. MacPherson
temporarily.
I am sending copies of this despatch to His Majesty's
Ambassador at Washington, to the Head of the British Middle
East Office, and to the Political Resident in the Persian
Gulf.
I have the honour to be,
with the highest respect,
Sir,
Your most obedient,
humble servant,
Sd/- D. SCOTT FOX.
The Right Honourable Ernest Bevin, M.P.,
etc., etc., etc.,
FOREIGN Oil ICE.
V