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File No. 600.119/1419a

The Secretary of State to the Ambassador in Great Britain ( Page )

[Telegram]

1608. For Sheldon [from War Trade Board]:

No. 1281. For your information only. We have had under discussion the disposition to be made of a large number of applications for the exportation of oil-well supplies, oil and other miscellaneous commodities filed on behalf of the Royal Dutch Shell and its subsidiaries. It is our present opinion that nothing should be done that would in any way interfere with or lessen the production of oil in the region from which the Associated Governments derive their supplies of mineral oil. In consequence, we are disposed to permit without hindrance the exportation of all supplies required to increase the production of mineral oils in the region from which the Associated Governments might secure petroleum. This, notwithstanding the fact that the withholding of licenses for the exportation of oil-well supplies has been instrumental in bringing to a head the negotiations for the pooling and re-routing of the oil production of the Far East. At the same time, we believe that the negotiations for the pooling and re-routing arrangement should be taken in hand by the Governments themselves and a speedy conclusion thereof insisted upon.

So far as concerns the exportation by the companies involved in the negotiations of commodities whose exportation would not aid in the increase of production of petroleum or conflict with existing arrangements for the allocation of oil between the two oil interests as in Scandinavia, we have determined to continue the withholding of the licenses for the purpose of assisting in the conclusion of the arrangement aforesaid.

Lansing