856d.6363/38
The Minister in the Netherlands (Phillips) to the Secretary of State
[Received February 24.]
Sir: I have the honor to report that I have recently had occasion for a further conference with M. van Karnebeek, the Minister for Foreign Affairs, on the subject of the development of mineral oil in the Netherlands Indies, and more especially with regard to the negotiations which are being carried on between the Sinclair Consolidated Oil Corporation and the Bataafsche Oil Company for participation in the so-called Djambi Concessions.
I informed M. van Karnebeek that, at the suggestion of the Foreign Office several months ago, I had come in touch with the Minister of the Colonies and had discussed in detail with M. de Graaff the participation of American capital in the projected development of the Djambi fields; that M. de Graaff had pointed out that the Government had already committed itself to the Bataafsche as the Government’s agent in this work, but that it was possible for American capital to reach an agreement directly with the Bataafsche and in this way participate in the enterprise. I pointed out to His Excellency that I had gained the impression in my interviews with the Minister of the Colonies that the latter was inclined to favor the combination of American and Dutch capital and that he had gone so far as to express to me his willingness to advise the Bataafsche to reach an agreement with American capital. Thereupon I read to His Excellency the following extracts from my despatches to the Department:
Despatch No. 325, October 20, 1920.2
“I think, however, that he himself (the Minister of the Colonies) is in favor of the Bataafsche Company reaching a working arrangement with the Sinclair Consolidated Oil Corporation and that it is likely he will use his influence privately to this effect.”
[Page 529]Telegram No. 272, October 20, 10 AM, [11 a.m.?] 1920.3
“My definite impression is that the solution to problem of participation of American capital with the Bataafsche might yet be discovered, for the question was still open.”
Despatch No. 313, October 7, 1920.3a
“He (the Minister of the Colonies) saw no objection to American capital reaching an agreement if it could with the Bataafsche concern and in this way becoming a part of the development of the Djambi fields. I asked him whether he would urge the Bataafsche to include American capital if it made application to participate. He promised me that he would do so and furthermore that he would have a conference with the Bataafsche company within a few days and would recommend such action.”
I told M. van Karnebeek that I had recently seen in the Press that the Senate of the United States had called for the correspondence between the American Government and foreign Governments on the subject of mineral oils and reminded him that the Department had recently requested permission to publish the correspondence between the Dutch Government regarding the oil situation in the Netherlands; that, in the circumstances, I felt it was very important for me to know now whether my reports regarding the attitude of the Minister of the Colonies towards American participation represented the attitude of the Dutch Government. I asked whether I had exaggerated in any way the views of the Colonial Department and, if not, whether they were in fact the views of the Ministry for Foreign Affairs. M. van Karnebeek took notes of the phraseology which I had used in my despatches to the Department above referred to, and promised at once to consult with his Colleague, the Minister of the Colonies.
To-day, M. van Karnebeek advises me that he has had a conference with his Colleague of the Colonial Department and that he read to him the words which I had employed; that I had not exaggerated the favorable attitude of the Colonial Department, and that, moreover, my reports represented the attitude of the Dutch Government. M. van Karnebeek, however, referred to a meeting in London between Mr. Sinclair, of the Sinclair Consolidated Oil Corporation, and Mr. Colijn, of the Bataafsche Company, which had not been wholly satisfactory and at which no agreement seemed to have been reached between the interested parties.
… [This situation] illustrates the difficulty of the task of American diplomatic officers in matters of this kind when the representatives [Page 530] of American business concerned fail at the last moment to take advantage of the favorable situation which has been created for them through the efforts of the American Government.
I have [etc.]
- Not printed.↩
- Foreign Relations, 1920, vol. iii, p. 283; the quotation here printed is a paraphrase.↩
- Not printed.↩