875.6363/225

The Minister in Albania (Hart) to the Secretary of State

No. 30

Sir: I have the honor to report that the Standard Oil Company of New York has completed the selection of lands under the concession ratified by the Albanian Parliament on July 14, 1925.

Selections have been made in two tracts, one of 47,000 hectares and the other of 6,000 hectares. The larger tract stretches along the northern shore of the Bay of Valona and runs north up the Adriatic coast approximately 25 miles, adjoining the western border of the Italian concession for probably 15 miles of this distance.

The smaller tract is on the north side of the Bay of Durazzo far removed from the selections made by the Anglo-Persian and the Italian companies. E. S. Sheffield, Standard Oil representative in Albania, speaks somewhat pessimistically of the outlook for oil on the lands selected for his company, but he is thought to be more optimistic than he would make believe. He is an engineer and geologist, as differentiated from the breezy oil stock promoters, and therefore has a professional reputation at stake. He admits that the geological structure is promising on that part of the selection lying on and near the Bay of Valona.

Significance also may be attached to the fact that this experienced geologist has seen fit to include in his company’s concession such a large area on Durazzo bay. If oil should be found in paying quantities in this sector the competing companies doubtless would feel that their experts had been guilty of a serious oversight, because Durazzo has excellent harbor possibilities on the east side of the Adriatic and is near to an abundant timber supply, so essential to oil drilling operations on any large scale.

[Page 511]

The Anglo-Persian Oil Company is preparing to start drilling its first well on the 12th of this month at a point about 15 miles north and slightly east of Valona.

I have [etc.]

Chas. C. Hart