890g.6363 T 84/125

The Associate General Counsel of the Standard Oil Company of New Jersey (Guy Wellman) to the Secretary of State

My Dear Mr. Secretary: In Mr. Teagle’s absence, this will acknowledge the receipt of your favor of the 18th instant, file NE 890g.6363 T 84/123, with reference to Article 34 of the draft convention (as of November 16, 1923) now under discussion between the Turkish Petroleum Company and the Iraq Government.

We beg to thank the Department for its helpful consideration of the matter of our suggested amendment to Article 34 relative to nationality, and the Turkish Petroleum Company’s request that it be deleted.

For the Department’s information, we beg to enclose a copy of the cablegram which we are sending to Mr. H. E. Nichols today, as Managing Director of the Turkish Petroleum Company, which we trust takes note of your views and suggestions. I read the cablegram to Mr. Dulles over the telephone for his criticism before sending it.

Respectfully yours,

Guy Wellman
[Enclosure—Telegram]

The President of the Standard Oil Company of New Jersey (W. C. Teagle) to the Managing Director of the Turkish Petroleum Company (H. E. Nichols)

Referring to your telegrams 8th, 13th and 14th relative to Article 34 of Draft of Convention of November 16th, 1923, we accept your urgent request that our amendment Article 34 relative nationality be omitted but in view of our relation to open door policy of State Department and resultant necessity to fully protect same we accept on four conditions namely

  • First, that operation of subleasing system will not be defeated by provisions of British or Iraq Government law or by any collateral understanding
  • Second, that amendment has not been submitted to Iraq Government and withdrawn
  • Third, that Turkish Petroleum Company agrees to carry out Open Door plan and that Iraq Government shall understand during negotiation that Article 34 without our amendment enables Turkish [Page 264]Petroleum Company to make transfers to persons firms or corporations irrespective of nationality
  • Fourth, that your Foreign Office and Turkish Petroleum Company now give to American Group their respective assurances that foregoing conditions shall obtain.

W. C. Teagle