[Enclosure]
The American Ambassador (Davis) to the British Secretary of State for Foreign
Affairs (Curzon)
London, May 12,
1920.
No. 317
My Lord: Pursuant to the instructions
of my Government, I have the honour to inform Your Lordship that
the Government of the [Page 652]
United States has been officially [unofficially]65
informed that the Mandates for Mesopotamia and Palestine have
been assigned to Great Britain; the Mandate for Mesopotamia
being given subject to friendly arrangement with the Italian
Government regarding economic rights.
The Government of the United States desires to point out that
during the Peace negotiations at Paris leading up to the Treaty
of Versailles, it consistently took the position that the future
Peace of the world required that as a general principle any
Alien territory which should be acquired pursuant to the
Treaties of Peace with the Central Powers must be held and
governed in such a way as to assure equal treatment in law and
in fact to the commerce of all nations. It was on account of and
subject to this understanding that the United States felt itself
able and willing to agree that the acquisition of certain enemy
territory by the victorious powers would be consistent with the
best interests of the world. The representatives of the
principal Allied Powers in the discussion of the Mandate
principles expressed in no indefinite manner their recognition
of the justice and far-sightedness of such a principle and
agreed to its application to the Mandates over Turkish
territory.
The Administration of Palestine and Mesopotamia during the
interim period of military occupation has given rise to several
communications between the United States Government and that of
Great Britain relative to matters that had created the
unfortunate impression in the minds of the American public that
the Authorities of His Majesty’s Government in the occupied
region had given advantage to British oil interests which were
not accorded to American Companies and further that Great
Britain had been preparing quietly for exclusive control of the
oil resources in this region. The impression referred to has, it
is believed, been due in large part to reports of authoritative
statements regarding the general Oil Policy of Great Britain and
of actual work such as the construction of pipe lines, railways
and refineries, the operations of certain oil wells, the
acquisitions of dockyards, cotton investigations and permitted
researches by certain individuals whose activities, though
stated to be solely in behalf of the civil Administration, were
attended by circumstances which created the impression that some
benefit at least would accrue to British oil interests.
Certain of the occurrences above referred to have been explained
by his Majesty’s Government as due to military necessity, and
certain others as due to laxity on the part of local
authorities. It must be realized, however, that it has been
difficult for the American people [Page 653] to reconcile all of these reports with the
assurance of His Majesty’s Government that “the provisional
character of the military occupation does not warrant the taking
of decisions by the occupying power in matters concerning the
future economic development of the country”, and that the
invitation [initiation] of new
undertakings and the exercise of rights under concessions would
be prohibited. The United States Government has confidence in
the good faith of His Majesty’s Government in attempting to
carry out the assurances given by His Majesty’s Foreign Office,
but desires to point out that the considerations above referred
to indicate the difficulty in insuring the local execution of
such undertakings and the necessity for careful measures to
guarantee the practical fulfillment of the principles expressed
and agreed to during the peace negotiations at Paris.
With this thought in mind, the Government of the United States
ventures to suggest the following propositions, which embody or
I illustrate the principles which the United States Government
would be pleased to see applied in the occupied or mandated
regions and which are submitted as furnishing a reasonable basis
for discussions. In the event of such discussions it would be
assumed that the legal situation as regards economic resources
in the occupied or mandated regions would remain in statu quo pending an agreement:
- (1)
- That the Mandatory Power strictly adhere and conform
to the principles expressed and agreed to during the
peace negotiations at Paris and to the principles
embodied in Mandate “A” prepared in London for adoption
by the League of Nations by the Commission on
Mandatories.
- (2)
- That there be guaranteed to the nationals or subjects
of all nations treatment equal in law and in fact to
that accorded nationals or subjects of the Mandatory
Power with respect to taxation or other matters
affecting residence, business, profession, concessions,
freedom of transit for persons and goods, freedom of
communication, trade, navigation, commerce, industrial
property, and other economic rights or commercial
activities.
- (3)
- That no exclusive economic concessions covering the
whole of any Mandated region or sufficiently large to be
virtually exclusive shall be granted and that no
monopolistic concessions relating to any commodity or to
any economic privilege subsidiary and essential to the
production, development, or exploitation of such
commodity shall be granted.
- (4)
- That reasonable provision shall be made for publicity
of applications for concessions and of Governmental Acts
or Regulations relating to the economic resources of the
Mandated territories; and that in general regulations or
legislation regarding the granting of concessions
relating to exploring or exploiting economic resources
[Page 654] or
regarding other privileges in connection with these
shall not have the effect of placing American citizens
or companies or those of other nations or companies
controlled by American citizens or nationals of other
countries at a disadvantage compared with the nationals
or companies of the Mandate nation or companies
controlled by nationals of the Mandate nation or
others.
The fact that certain concessions were granted in the mandated
regions by the Turkish Government is, of course, an important
factor which must be given practical consideration. The United
States Government believes that it is entitled to participate in
any discussions relating to the status of such concessions not
only because of existing vested rights of American citizens, but
also because the equitable treatment of such concessions is
essential to the initiation and application of the general
principles in which the United States Government is
interested.
No direct mention has been made herein of the question of
establishment of monopolies directly or indirectly by or in
behalf of the Mandatory Government. It is believed, however,
that the establishment of monopolies by or in behalf of the
Mandatory Government would not be consistent with the principles
of trusteeship inherent in the Mandatory idea. His Majesty’s
Government has stated its conception of the necessity for the
control of oil production in these territories in time of
national emergency. The Government of the United States does not
intend at present to suggest arrangements that shall extend to
any consideration not included in an enlightened interpretation
of what constitutes its legitimate commercial interests. The
question of control in times of national emergencies of supplies
which may be deemed essential by Great Britain is a subject
which the United States Government deems a matter for separate
discussion.
The Government of the United States realizes the heavy financial
obligations which will arise in connection with the
administration of the Mandatory. It believes, however, that any
attempt toward reimbursement by the adoption of a policy of
monopolization or of exclusive concessions and special favours
to its own nationals, besides being a repudiation of the
principles already agreed to would prove to be unwise even from
the point of view of expediency both on economic and political
grounds. It also believes that the interests of the world as
well as that of the two respective countries can best be served
by a friendly co-operation or a friendly and equal competition
between the citizens of the two countries and citizens of other
nationalities.
The Government of the United States would be glad to receive an
early expression of the views of His Majesty’s Government,
especially in order to reassure public opinion in the United
States.
[Page 655]
I have the honour further to acquaint Your Lordship that this
Note is not designed by way of reply to the Allied Note from San
Remo,66 which will be answered separately.
I have [etc.]