856d.6363/72: Telegram

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

37. Your 18, March 31, 3 p.m. Difficult to obtain definite information regarding splitting of Djambi concession. Government maintains this is out of the question as Bataafsche has been promised exclusive development. However, interests hostile to Government declare Djambi may be split if American capital makes sufficiently strong demands. Standard Oil representative, a Dutchman, has not come to Legation and I am not in touch with him. Report is that Standard Oil Company appears not to be particularly interested in this business. Local representative of Texas Oil Company [apparent omission] for instructions. If Standard Oil Company, Sinclair and Texas companies are willing to work together possibility of admission to development Would in my opinion be far greater. By competing with each other there would be little chance of success.

Dutch holders in Siak concession desire Standard Oil Company’s cooperation. As to validity of concession I know nothing. Rotter-damsche Bank which is hostile to the Royal Dutch have also expressed willingness to cooperate with Standard Oil Company in this connection although in absence of knowledge of details they cannot commit themselves.

Phillips