02/18/97 TUE 13:11 FAX913 263 4218 enopti OPTIONAL FORM 09 (7-90) . Bise ( * FAX TRANSMITTAL Parics Depiagency 9 EISENHOWER LIBRARY |eotosm> Hae aed Dez, PO aS -bi bf/ Fax # ~ 101 NGN 7540-01 317.7068 GENERAL SERVICES ss ORLY . Wool 407794 ADM ISTRATION MEMORANDUM SUBJECT: Discussion et the 199th Meeting cf the National Security Council, Thursday, May 27, 1954 Present at the 199th meeting of the Council were th dent of the United States, presiding; the Vice President of States; the Secretary of State; the Acting Secretary of Defense; the Idrector, Foreign Operations Administration; and the Director] Office of Defense Mobilization. Also present were the Secretary of the Treas- ury; the Attorney General (for Items 1 through 6); the Direc of the Budget; the Chairman, Atomic Energy Commission (for I 8); Assistants Attorney General Barnes and Rearkin: Mr. Herb Jv., Department of State (for Item 2); the Chairman, Joint Steff; the Director of Central Intelligence; Mr. Robert Cutl 5 and Hoover, 8 of Special Assistant to the President; the Deputy Assistant to the President; Mr- Robert Amory, Jr., Central Intelligence Agency; the White H Secretary; Mr. Bryce Harlow, Administrative Assistant to the the Executive Secretary, NSC; and the Deputy Executive Secre Staff Hresident; » NSC. There follows a siummary of the discussion at the meqting and the chief points taken. 1. SAUDI ARABIAN-BRITISH TERRITORIAL DISPUTE CVER BURAIMT Mr. Allen Dulles pointed out how far back the dispute the boundaries between the sheikdoms and Saudi Arabia went. pute had now beccme acute because of the discovery of of] in in sufficient quantities to be commercially profitable. The dems remained under British influence, and the Saudi Arabians now turned to Aramco and insisted that it send in teams to and drill in the disputed area, where British teams have alre gun thelr operations. Anxious to avoid a squeeze, the American over e disthe ares sheik. have pect beoil from going into the disputed area. things now stood. way companies heve appealed to the State Department to forbid their This was substantially thd teams Secretary Dulles inquired whether it was not a fact the pending arbitration nroceedings for settling the territor pute would proceed to a conclusion if the British would agree pend well drilling in the disputed area. It is because the will not stop their own drilling that the Saudis insist that DECLASSIFIED E.O. 12958, SEC. 3.6(b} m2 96-UG) py tte oaTe 131 “—5P-SECRE