September 30, 1952
MEMORANDUM OF CONVERSATION
Participants: The British Ambassador Assistant Secretary Byroade Mr. Acheson
In the course of his call upon me this afternoon, the British Ambassador covered a variety of matters which will be reported by Mr. Byroade.
One matter which the Ambassador raised has to do with the attached draft letter proposed to be sent from Her Majesty's Government to the British oil companies involved in legal proceedings in the United States under the anti- trust laws. The Ambassador asked me whether I had seen this letter and whether I had any comments to make regarding it. I said that I had seen the letter and that I thought the British Government would wish to reconsider the wisdom of sending it for two reasons:
1. The letter covered documents some of which might well be within the jurisdiction of the United States and subject to the orders of its courts. In regard to these document which were very broadly and vigorously described so that their identification would have to be left to the discretion of the oil companies themselves, the letter directed they should not be provided in response to orders, subpoenas or requests made or issued in connection with the proceedings in the United States under the anti- trust laws. I felt sure that the British Government could not intend to direct British companies to disregard orders of the United States courts and that it would wish to study this phase of the matter further.
2. The letter also applied to documents which might be within the jurisdiction of the British Government or other governments than the United States. So far as those within the jurisdiction of Great Britain were concerned, British authority over them was very great indeed.
It might also be considerable over those in other jurisdictions. But even so, I doubted whether the British Government would wish out of hand to direct its subjects not to produce papers so broadly and vaguely described. Although the British interest in these papers was undoubted, the British Government might well consider it wise to discuss this matter with the legal authorities in the United States before coming to so drastic a conclusion.
The Ambassador thanked me for my comments and said that they would be given careful consideration.
DA
S:DAcheson:mlm
PERSONAL AND CONFIDENTIAL
The following is the general line of the draft letter from Her Majesty's Government to the British Oil Companies.
The right of a country to institute legal proceedings in connexion with things done outside that country by persons who are not nationals of that country is a matter of concern to Her Majesty's Government.
Her Majesty's Government understand that in connexion with proceedings in the United States of America under the anti-trust laws of the USA you have been or may be requested or required to produce documents and your officers have been or may be required or requested to give information relating to the conduct of your business outside the USA.
The Government consider it contrary to the national interest that British oil companies or British nationals should, in response to orders, subpoenas, or requests made or issued in connexion with proceedings in the USA under the anti-trust laws of the USA, produce documents, papers or other information relating to the conduct of their business outside the USA which might have the effect of prejudicing the conduct of such business, and of seriously endangering the economic, strategic or political interests of the Western Powers.
For the above reasons, such documents, papers or other information should not be provided.