891.6363 Standard Oil/304: Telegram

The Secretary of State to the Minister in Persia (Kornfeld)

29. Representatives of the Sinclair Oil Company have recently indicated to the Department their view that the impression prevailed in Persian governmental circles that the Department was not prepared to give its support to that Company should it secure a valid concession in Persia. Department has consistently pointed out that this government had no preference as between the competing American companies. (See for example Department’s telegram of August 29, 1922,10 which stated that the Department would not hesitate to give its support to either of the American companies without discrimination or partiality upon an appropriate determination that the company possessed valid rights in Persia.) The Department does not therefore understand how Persian Government could be under any misapprehension in this matter and doubts whether Sinclair has been correctly informed.

In view of the fact, however, that the Persian Medjliss has passed a bill which contains the provision that the North Persian Petroleum [Page 719] Concession shall be given to an independent and reputable American company, since there has been a recent cabinet change in Persia and since, furthermore, in view of the late election, a new Medjliss may shortly bring up oil question for further consideration, the Department desires you to take an early occasion to make entirely clear to the Persian Government the following points: (1) that this Government has no choice as between the competing American companies; (2) that it is prepared to support the legitimate interests of any reputable American company which is duly given a legal and valid concession in Persia; (3) that in furthering the principle of the Open Door and equality of opportunity it is the Department’s general policy to extend all proper diplomatic support to the American interests which may avail themselves of the opportunities thereby presented.

  1. Not printed.