892.6363/2

The Second Secretary of the Legation in Siam (Williams) to the Chief of the Division of Far Eastern Affairs, Department of State (MacMurray)

Letter No. 14

Dear MacMurray: I learned indirectly, through an official channel, a few days ago, that oil had been found in Northern Siam and that plans for the exploitation of these deposits were already under way. It was stated that development work was to be carried on under the direction and supervision of Prince Purachatra, Commissioner-General of the Siamese State Railways, the general notion being that the primary and most important use of petroleum in this country would [be] its service as locomotive fuel. As to the various competing foreign companies, the Government were prepared to distribute oil concessions, on a royalty basis, impartially among them, and to permit the actual prospecting and drilling to be carried [Page 883] on under the management of these petroleum experts, it being understood always that an adequate supply of oil would be available at all times for Government use.

While this intelligence was interesting rather than exciting, I thought it well to notify H. D. Warner, the Standard Oil representative in Siam, fully as to the project. I found he was already informed in a general way,—and I gather that American interests will watch developments closely here.

Yours,

Curtis Williams