856d.6363/16: Telegram

The Acting Secretary of State to the Minister in the Netherlands (Phillips)

[Paraphrase]

591. Your 269 October 7, 4 p.m. and 270 October 8, 1 p.m.

You may proceed upon your own discretion, always observing the considerations noted below until receiving further instructions.

  • First, the Government of the United States would consider satisfactory any change in the Netherland policy whereby American corporations would receive opportunities and rights regarding actual production much like position in United States of foreign companies enjoying reciprocity.
  • Second, although we can give no opinion concerning its effects upon the American general leasing law or the operation of that law, a partitioning of the Djambi region, perhaps as outlined in the concessions of 1915 [1913?], in such a way as to allot to a Dutch corporation one concession and to leave to Americans an equitable opportunity for negotiations with The Hague for the other, would appear to be a satisfactory settlement for the time.
  • Third, we could not admit as satisfactory in regard either to principle or to permanency a private agreement between an American company and the Bataafsche Company. Nevertheless, since it seems that the Government of the Netherlands has pledged itself definitely to the arrangement with the Bataafsche leaving private negotiations with the latter as perhaps the only opportunity to bring about American participation at present or at all, we do not wish that such private negotiations should be discouraged. Since the entry of an American oil corporation, and especially of one of the several independents, would bring greater competition and would therefore be to the advantage of shipowners and consumers of Europe, the weighty objections of past years to Standard’s participation are not now valid. Such action as would decrease the favorable disposition [Page 283] of the Bataafsche or the Government of the Netherlands toward participation by an American company should be avoided.
  • Fourth, however, the impression should not be created that the Department can accept the privileged situation of the Royal Dutch or the position now taken by the Netherlands Government as satisfactory.
Davis