By W. Taylor Fain (auth.)
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Additional resources for American Ascendance and British Retreat in the Persian Gulf Region
Strategists recognized Britain’s critical role to the defense of the Middle East and did not wish to weaken its closest European ally in the Persian Gulf. Thus, they urged political compromise in order to preserve the interests of both parties. British policymakers saw little to admire in Iranian nationalism, which they viewed as “TOLL-GATES OF EMPIRE” 41 hysterical and destructive, and resented American efforts to force compromise on them. Officials of the Attlee and Churchill governments felt that radical nationalism in Iran presented a more immediate threat to their interests in the Persian Gulf than the possibility of Soviet aggression.
S. government endorsed and protected Aramco’s interests. S. government into each other’s arms and produced an effective, if wary, partnership in the late 1940s. S. government worked assiduously to consolidate its political and commercial position in Saudi Arabia during the early Cold War and made the kingdom the centerpiece of its Persian Gulf and Arabian diplomacy. Ibn Saud and his counselors comprehended the value the United States placed on its relationship with their country and extracted a price for it.
On October 31, 1950, President Harry S. S. ”51 Thus, the United States extended to Ibn Saud a guarantee of Saudi security. Meanwhile, the Department of State brokered a new concession for Aramco in Saudi Arabia that divided profits evenly between the company and the Saudi government. The so-called 50-50 agreement greatly increased Saudi oil revenues but did not harm Aramco financially. S. 52 Planning the Defense of Arabia and the Gulf While the United States attempted to foster Persian Gulf and Arabian political stability through economic development and closer ties to Saudi Arabia, it also worked to establish a cooperative relationship with the British in the region.