Office of the Historian

362.115 St 21/89: Telegram

The Secretary of State to the Commission to Negotiate Peace

Washington, December 4, 1919—2 p.m.

3961. Your very urgent 5371, November 19, 3 p.m. [November 23, 6 p.m.] The answer of the Standard Oil Company just received. The substance of the position taken by them is as follows:

1.
They would operate tankers with American crews or even with British crews.
2.
They do not wish the ships to sail under A.M.T.E. flag without distinct allied understanding that this does not give the A.M.T.E. control of operations or prejudice Standard Oil beneficial title. They wish the ships to sail under American flag.
3.
They do not wish ships to lie idle in Hamburg or in the Firth of Forth.
4.
They are not willing under the present circumstances to agree that final determination of title shall rest with the Reparation Commission on account of the possibility of non-ratification of the treaty.
5.
The Company is not willing to modify its position, that it is entitled unconditionally to the ships, or to recognize that the transfer of the ships to the parties entitled thereto can be used as a basis of bargaining.
6.
The Company feels further that the proposition outlined in Mission 5371 was made without authority and afterwards withdrawn [Page 576] and that if such proposition was now definitely put forward by the United States it might be treated by France or the other Allies merely as furnishing an opportunity for further demands.
7.
It understands that reports have been set afloat to the effect that the Company has extended credits to Germany while refusing them to France. The Company states that these reports are unfounded and that they are not giving special or preferential treatment to any country.
8.
It is realized also that there is need of oil in France, Italy and Belgium. The Company in view of the above, but not as a condition of the recognition by other governments of their just rights in the tankers, are willing to state their position as regards credits for transportation of oil.
9.
They will agree that after the completion of the two round trips of the tankers from United States to Germany, the 8 tankers now in commission should be used in delivering a total of 8 cargoes as follows: 2 to Belgium, 4 cargoes to France and 2 to Italy. They are unwilling to go further as it would amount to tying up of the use of the ships indefinitely for the service of the three countries mentioned.
10.
As to credits,
(a)
The Company is willing to extend reasonable credits considered on the merits of the propositions made.
(b)
The Company feels that it cannot deal with the question of extending credits on the basis of preference for one nation as against another.

You will note in this connection telegram from Judge Payne to Mr. Polk.65

Lansing
  1. Not printed.↩