892.6363/orig.
The Secretary of State to the Siamese Minister (Karavongse)
The Secretary of State presents his compliments to the Siamese Minister and has the honor to inform him that a letter dated the 11th instant has been received from the Secretary of the Interior, from which the following is quoted:
“In response to an informal telephonic request by the Siamese Legation of the Chief Geologist of the United States Geological Survey, for advice regarding the development of the oil resources of Siam, and in particular as to geologists whom the Geological Survey considers as well qualified in training, experience, and personal character to undertake the examination of possible oil territory in Siam, with the object of advising the Government, not only as to the oil possibilities of different regions, but as to definite locations in areas promising greatest success in the development of oil production in Siam:
“The Director of the Geological Survey is heartily interested in the plans and purposes of the Siamese Government and is glad to be of such small assistance as the circumstances permit. He advises me that in the judgment of the Chief Geologist reconnaissance geological surveys should be made both of North Siam and of the Malay Peninsula, with the object of differentiating and excluding from further consideration areas of too advanced regional metamorphism or of igneous rocks. Special attention should be given to the areas of Cenozoic formations in northern Siam, in which conditions analogous to those of the Burma oil fields may be found to obtain, or in which the stratigraphy, succession, composition, structure, and stage of alteration of the formations would appear to be favorable for exploration, preference being of course given to areas containing such surface indications as oil or gas seeps, pitch or asphalt deposits, mud volcanoes, etc. Areas appearing on reconnaissance geologic review to be most propitious would presumably be examined and mapped in detail by the geologist, who, by means of such closer scrutiny and more exact information, should be able to select for testing by the drill locations offering greatest promise of success.
“There is nothing in the known geological conditions to indicate that Siam does not contain oil deposits of economic importance that may be of great value to the Kingdom, and for this reason the Director of the Geological Survey fully agrees with the Siamese Government as to the wisdom and desirability of the proposed geological examinations.
“In southern Siam and the Malay Peninsula it is rather probable that rocks of older Mesozoic, and possibly of Cretaceous, age may be too far altered to justify hope of developing commercial oil deposits [Page 881] therein, but conditions analogous to those in Sumatra, where oil occurs in Tertiary rocks, may reasonably be expected.
“Among the American geologists who, in the judgment of the Director of the Geological Survey and his scientific associates, are well qualified to undertake such investigations as those outlined above are the following:
- Sidney Paige, 3501 Woodley Road, Washington, D.C.
- W. A. English, 822 Citizens Nat. Bank Building, Los Angeles, Calif.
- R. C. Moore, University of Kansas, Lawrence, Kansas.
- Wallace Lee, 611 17th Street, Denver, Colorado.
- John L. Rich, Argus Oil Co., Box 294, Iola, Kansas.
- F. R. Clark, Sistersville, West Virginia.
- W. R. Calvert, Newhouse Bldg., Salt Lake City, Utah.
“None of these geologists is identified with the organization or policies of the larger American oil companies. Messrs. Clark and Lee are attached to two small American companies, the Wiser Oil Company and Plateau Oil Corporation, respectively. They are men of high character, proven ability, relatively wide experience in the examination of oil fields, and of good judgment. They are men such as the Geological Survey would trust for similar examinations if the territory in question were American. One of the geologists, Mr. Paige, holds the highly responsible position of geologist in charge of geologic investigations in the Federal Survey, and should he be preferred by the Siamese Government and arrangements made with him, his leave of absence would be granted to him as a courtesy to a friendly Government.
“As to the salary which the Siamese Government might be required to pay to one of the geologists above mentioned, the Director is somewhat at a loss in making suggestions, as requested by the Legation, on account of the very high prices paid by the leading oil companies, not only to consulting geologists but to the chief geologists regularly in their employ. It seems unlikely, however, that any one of those mentioned above will demand so much as $2000 a month on a contract covering a year or more, since, although much larger amounts have been paid in some cases for foreign examinations in remote and more or less unhealthful countries, it is believed that the opportunity to assist the Government of Siam in the development of its oil resources, to carry on geologic exploration in a region as yet so little known geologically, and to contribute to geological knowledge and literature the scientific results of such field exploration and examination, will appeal to the scientific and professional esprit of the average American geologist. Yet, I anticipate that the Siamese Government may be asked to pay $10,000 per annum, or possibly as much as $25,000 for two years of service. On the contrary, for the reasons just stated, it may be that a geologist will undertake the task at a much lower salary. However this may be, the Government of Siam is initiating a complex and important business enterprise which may prove of the greatest value to the Kingdom. In this enterprise so much in the way of success, directness, efficiency, and economy depends upon the competency and judgment of the geologist, and the losses through [Page 882] poor locations and fruitless tests, consequent to the employment of a less well qualified geologist, lacking in adequate training or experience, may be so great that it is plain that the salary item is relatively insignificant as compared to the advantages gained from the best geologic guidance.
“Geologic examinations, even if of no greater refinement than reconnaissance, if adequately carried out with special reference to the oil possibilities of a given region, are necessarily time-consuming and painstaking, with little opportunity for the avoidance of hardships or certain types of personal labor. It seems probable, therefore, that unless the geologist in charge of the explorations for the Siamese Government is authorized to recruit a small staff of assistant geologists, the period of two years may be insufficient adequately to cover the regions most promising as to oil possibilities in the Kingdom. The Director of the Survey therefore recommends that the Legation formulate its plans on the basis of continuing the geological surveys for not less than two years. This would seem to be the part of wisdom, even should the geologist discover within a short period an area meriting immediate testing.
“Finally, the Director of the Survey bespeaks for the geologist, whoever he may be, the opportunity to make known to the world, through publication, the discoveries as to the general geology, physiography, structure, and geologic history of the areas examined, resulting from the proposed field explorations, thus adding to the world’s geologic knowledge in general, as well as to the knowledge of the mineral wealth and physical conditions of Siam.”