Your 374. [1]

Dominions Office advises that Anglo-American discussions on oil
are about to be resumed in Washington at the Ministerial level.

Beaverbrook as leader of the United Kingdom Delegation has been
asked to make arrangements to keep Dominion representatives in
Washington in touch with discussions.

The intention now appears to be to seek an immediate Anglo-
American understanding with a view to publishing a joint
memorandum but to defer multilateral discussions until after the
war.

Our communications with Dominions Office have stressed the
relationship between petroleum supplies and world security [2] and
we succeeded in having the United Kingdom draft strengthened in
this respect. The United Kingdom did not think it possible to
obtain acceptance for our suggestion that there should be definite
commitments in the memorandum of understanding that supplies of
oil would be withheld from aggressors. [3] Presumably there will
be opportunity for again raising this point during separate
discussions regarding arrangements for collective security.

We also emphasized to United Kingdom our interest in the eventual
conclusion of an International Petroleum Agreement and suggested
certain modifications of United Kingdom draft with a view to
removing the danger that the purpose of the proposed memorandum of
understanding might appear to be that Britain and America should
support each other in holding on to what they have.

Please keep closely in touch with talks and advise us. [4]