856d.6363/72: Telegram
The Secretary of State to the Minister in the Netherlands (Phillips)
21. Your telegram no. 37 of April 2, 2 p.m. The vice president of the Standard Oil Company of New Jersey, Mr. F. D. Asche, is now en route to Europe to consult with you and with the Dutch officials with respect to participation in the Djambi oil concession. On March 7 Mr. W. T. Klaare, who is a managing director of the subsidiary of [Page 535] the Standard Oil Company, and Mr. G. A. Popp conferred with the Minister of Colonies. The Standard Oil Company of New Jersey has offered to set up a limited liability company to enter into an agreement with the Dutch Government for the exploitation of part of the Djambi area.
You may tell the Minister for Foreign Affairs that the American Government still has in mind the assurances which he and the Minister of Colonies gave with respect to the favorable attitude of the Dutch Government toward participation by American interests. Reference to Legation’s 440 of January 31. You will clearly explain that you are not acting in the interests of a particular American corporation, but you may invite his attention to the fact that the definite proposals made by the Sinclair and Standard Oil Companies give sufficient proof that experienced and responsible American concerns are ready and desirous of assisting the Dutch Government in the development of the oil industry. It would not be satisfactory to the American Government either to have the decision on American participation postponed until the passage of the bill or to have the making of the decision delegated to the Bataafsche Company. You are instructed, therefore, to urge that the Dutch Government postpone action on the bill until an opportunity is given for Asche to confer.
The Department considers that American interests would probably be served best by the defeat of the bill if the proposal to divide the Djambi oil concession is not accepted and if before the passage of the bill specific guarantees are not given of adequate American participation by ownership of stock in the company working the concession. The Department is not aware whether the Standard and Sinclair interests have reached any agreement on the matter. You are expected to use your discretion in acting in such a manner as will serve in the most vigorous and practical manner American interests as a whole. See instruction no. 591 of October 16, 1920.13