811.6363/34

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

No. 418

Sir: Upon receipt of the Department’s Telegram No. 613, of December 31, 2:00 P.M., advising me, in accordance with my request, of the nature of the recent Act passed by the Philippine Legislature regarding the exploitation and development of petroleum oil lands in the Islands, I have the honor to report that I had a conference to-day with the Minister of the Colonies on this subject.

I recalled to him that he had asked me for information about this Act and whether in fact it excluded aliens from leasing or holding stock in leasing companies in the Philippine Islands. I told him [Page 549] that I had been surprised to learn of the existence of any such legislation and had cabled immediately to Washington for further information. It was, therefore, a gratification to me to be in a position to convey to the Minister the Department’s satisfactory explanation of the manner in which the Act had been passed and the steps which had been taken to amend it to conform with the well-known policy of the United States in oil production. The Minister thanked me for the explanation and said that he had a copy of the Philippine Act in his possession and that he had been very much astonished to learn of its exclusive provisions, especially in view of the position which the Government of the United States had taken in the development of petroleum oil in all parts of the world.

I am therefore grateful to the Department for placing me in a position to convey to the Minister of the Colonies the assurances of the Chief of the Bureau of Insular Affairs that, in his opinion, the Act in question will be amended as desired.

I have [etc.]

William Phillips