Office of the Historian

890g.6363 T 84/138

The Associate General Counsel of the Standard Oil Company of New Jersey (Guy Wellman) to the Chief of the Division of Near Eastern Affairs, Department of State (Dulles)

New York, February 5, 1924.
[Received February 9.]

Dear Mr. Dulles: Referring to my letter to you of January 28th [29] quoting telegram received from Mr. Nichols of [on?] that date, further consideration has been given to the questions raised by this cablegram in regard to the possible deletion of Article 34 from the proposed convention between the Government of Iraq and the Turkish Petroleum Company, Limited. Mr. Teagle is sending a cablegram today to Mr. Nichols, of which a copy is enclosed for your files.

You will note the importance attached to the retention of Article 34. The so-called subleasing plan of the Turkish Petroleum Company, as proposed by the American Group, is in its opinion necessary for the proper realization of the Open Door Policy of the State Department.

We are sincerely hopeful that the position taken in this reply to Mr. Nichols will result in the acceptance by the Iraq Government of that Article, and feel confident that if Mr. Keeling’s efforts in [Page 228] this direction have the full and hearty support and backing of the British Foreign Office that this will be done.

Yours very truly,

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)

[New York,] 5 February, 1924.

Referring your cables January 28th and 30th Article 34 is only one in proposed convention which gives full effect to open door formula which was the fundamental principle accepted by partners in Turkish Petroleum Co. prior to a discussion and agreement with American Group of the other details. Deletion of Article 34 might result in elimination of American Group’s participation in Turkish Petroleum Co. We are absolutely confident that if your Foreign Office will support Keeling in his contention that Article 34 is essential that present impasse will be successfully overcome. As to possible disclosure of Open Door plan we confirm views expressed in our cable January 23rd and our letter October 25th. We are ready to send someone from here to cooperate with Keeling if you decide it is desirable that this disclosure should be made at Bagdad and you desire such cooperation on our part in the matter.

Teagle