890g.6363/171a: Telegram

The Secretary of State to the Special Mission at Lausanne

[Paraphrase]

68. Your attention is invited to the correspondence concerning the Open Door policy with respect to a mandate for Mesopotamia and [Page 939] to the instruction sent to our Embassy in Great Britain, no. 233 of November 4, 1921,54 with which was enclosed a communication regarding the Turkish Petroleum Company to be presented to the British Government. You will note that it is suggested in that instruction that if claims under the Turkish Petroleum Company’s concession continue to be asserted, the matter should be submitted to suitable arbitration.

In any general settlement with respect to possible claims the Department feels that it would be advisable to provide for a suitable and impartial court or some other appropriate plan for arbitration so that there may be a just settlement of any contested claims in any of the territories under consideration. Such a plan would include conflicting oil claims whether they arise from concessions the extent or validity of which are in dispute or from conflicting property claims such as are involved in connection with the claims of Abdul Hamid’s heirs, as well as any other claims which may cause difficulty.

The position of the American Government as stated above should be indicated upon the proper occasion.

Hughes