File No. 355.115 C76/12.

The American Minister to the Secretary of State.

No. 36.]

Sir: I have the honor to refer to my despatch of March 8 last No. 29, and to inclose further correspondence on the subject of the discrimination against American oils which appears in the specifications for lubricating oils on the Belgian State Railways.

In a note from the Foreign Minister, of March 19, it is stated that notwithstanding the previous lack of success of American oils in experiments a new series of tests were undertaken on the basis of offering all guarantees of impartiality. It was deduced from these trials that Russian oils gave better results than American oils, as well as proving cheaper, but that nevertheless the Minister of Railways felt that these experiments for certain reasons might not have been made under entirely normal conditions, and so his excellency has ordered new competitive trials to be undertaken as soon as possible in order to come to a decisive opinion on this subject. In a correspondence with the Continental Petroleum Company which followed, and copies of which are inclosed,1 it was pointed out that an error in calculation might have suggested this conclusion of the cheaper character of the Russian oils, while really the figures as given in the Foreign Office note showed that the American oils were cheaper, certainly in this instance. Also subsequent study and discussion of the matter brought to light the fact that the mixture of tallow with the oils, as described in the Foreign Office note, would suggest that the test, mentioned as disadvantageous to the American oils, was in the lubrication of engine-cylinders only, as such a mixture is made use of as a rule for engine cylinders only while the more general lubrication of rolling stock requires a mixture of crude oil and rapeseed oil.

Accordingly in a note to the Minister for Foreign Affairs of today’s date, of which a copy is inclosed, this possible error in calculation as to the comparative cost of American and Russian oils was pointed out and inquiry was made as to the character of the experiments [Page 14] mentioned as disadvantageous to American oils, for if these experiments were only applied in the lubrication of the engine-cylinders and not to the general use of railway needs, they would be certainly insufficient and unsatisfactory in extent. It was also pointed out that in the great production of oil in America all sorts were to be found, and that the lack of quality in one, or in several, should not be a bar to the trial of others, and that the Department desired only an opportunity for fair tests of American oils, to be used only if found satisfactory, which would result in mutual advantage to the Belgian Government and to American competing concerns. I expressed gratification at the decision of the Baron de Broqueville, Minister of Railways, to give another test and stated I should notify the Department of this decision, in which a hope might be found for a final and favorable conclusion of this long standing question and a settlement to mutual advantage.

I have [etc.],

Larz Anderson.
[Inclosure 1.—Translation.—Extract.]

The Minister for Foreign Affairs to the American Minister.

Direction B. No. 824.]

Mr. Minister: I did not fail to advise the Minister of Railways, Posts and Telegraphs of the contents of the communication which the Legation addressed me on October 19 last1 and of those succeeding, regarding the use of American oils for lubricating the rolling stock of the Belgian State Railways.

Mr. de Broqueville advises me that the Administration of Railways, notwithstanding the lack of success of the previous experiments, undertook a new series of tests on a basis offering all possible guaranties of impartiality.* * * To sum up, it appears that it can be deduced from the trials made that the Russian oil gives better results than American oil, as well as being cheaper, on account of the smaller proportion of tallow used in the mixture. Nevertheless Mr. de Broqueville considers that these experiments were not made under sufficiently normal conditions as regards the quantities of tallow added to the oils tested, which considerable exceeded for both kinds of oil the proportions prescribed by instructions and sanctioned by practice.

Therefore my colleague has ordered that new comparative trials be undertaken as soon as possible, with the precautions mentioned above, in order to permit the forming of a well founded and decisive opinion on this question.* * *

I renew [etc.]

J. Davignon.
[Inclosure 2.—Extract.]

The American Minister to the Minister for Foreign Affairs.

No. 31.]

Mr. Minister: I have the honor to acknowledge the receipt of your excellency’s note of the 19th of March, in reply to this Legation’s note of October 19 and subsequent correspondence, on the subject [etc.].

Your excellency refers to comparative trials that have proved in the past disadvantageous to American oils and is so good as to give certain figures with regard to a late test from which a deduction is made that the Russian oils give not only better results but proved cheaper than the American oils which were used in the experiments in question. While these figures may [Page 15] possibly suggest this conclusion, yet I beg your excellency to be so good as to consider the following calculations which show, on the contrary, that notwithstanding the excess in the percentage of tallow the eventual cost of the American oils would be about ten per cent less than the cost of the Russian oils.* * *

My Government seeks only a fair and just opportunity for the trial of American oils, now so categorically denied in the specifications, and for their use only if found satisfactory. This would be of advantage certainly to the Belgian Railway Administration as well as to any competing American oil concerns.

I am gratified that the Minister of Railways, because of his conviction that the experiments just terminated departed somewhat from normal conditions of service, will institute a fresh set of tests, and I shall at once inform the Department of State of this intention. I beg further to ask your excellency, and your colleague of the Railways, to be so good as to consider that the removal of the restriction contained in the specifications for so many years past really need not depend at all on the success or failure of American oils, either in any one or in any series of tests, but the right for American oils to be fairly tested, and used only if found of advantage, is desired.

The Department of State considers that the correspondence already referred to in previous notes on the subject, which took place between the Department of State and the Belgian Legation at Washington at the time when the President determined to apply the minimum tariff to Belgium, gave assurances that this matter would be earnestly considered, and will no doubt see, in the delay due to the further tests to be undertaken by direction of Baron de Broqueville, a hope that a final and favorable decision may soon be reached concerning the removal of this discrimination, which so completely prohibits even the trial of American oils, and that this long-standing question may be settled happily and to mutual advantage.

I avail [etc]

Larz Anderson.
  1. Not printed.
  2. Not printed.