890g.6363 T 84/77
The President of the Standard Oil Company of New Jersey ( W. C. Teagle ) to the Secretary of State
[Received February 8.]
My Dear Mr. Secretary: Referring again to the proposal submitted to the American Group by the owners of the Turkish Petroleum Company, covered by Mr. Piesse’s telegram to me of December 12th, of which a copy was enclosed with my letter to you of December 13th,45 we were advised on January 26th by our London representative that the proposal in question had been amended, and that it could be regarded as definitely freed from any condition as to action to be taken by the State Department.
On the 31st ultimo the American Group met to determine its action with regard to this proposal, and it reached the conclusion, and so advised the Turkish Petroleum Company through its London representative, that the proposal for the 24% participation, with provision for 10% of oil to be deliverable free to Anglo-Persian Oil Company, Ltd., is impracticable as a business proposition. The American Group further expressed the feeling that some other plan acceptable to all interests concerned can be developed through a conference here, and urged that qualified representatives of the interests at present associated in the Turkish Petroleum Company should come here as soon as possible to negotiate and conclude the terms of a participation and of the working agreement.
At the moment we are awaiting definite advices regarding the suggested conference in New York.