856d.6363/535
The Secretary of State to
the Minister in the Netherlands (
Tobin
)
Washington
,
October 1,
1928
.
No. 592
Sir: Reference is made to your despatch No.
1553 of July 10, 1928, with which you transmitted copies and
translations of certain communications exchanged between the Legation
and the Foreign Office with regard to the question of reciprocity in
petroleum matters between the United States and the Netherland
Government. As was indicated in the Department’s telegraphic instruction
No. 28, of June 29, 4 p.m.,24 it had been hoped that the Netherland Government
would not make of record the statements contained in memorandum No.
21433 to the effect that American companies with Dutch capital desiring
to obtain and operate leases on the public lands of the United States
run grave risks by the absence of legal security. However, since the
Netherland Government has included these incorrect statements in its
memorandum of July 10 the Department finds it necessary to instruct you
to make reply thereto. The Department accordingly encloses a memorandum
on this subject for communication to the Netherland Government.
In handing the memorandum to the Foreign Office you should point out
orally that although this Government has found it necessary to make
reply to the memorandum of July 10 it is not done in a spirit of
controversy but merely for the purpose of record. You may also indicate
that should the Netherland Government be willing to withdraw the
memorandum in question, you are authorized to withhold the enclosed
memorandum. The Department would, of course, prefer the latter
course.
I am [etc.]
For the Secretary of State:
W. R.
Castle, Jr.
[Enclosure]
Memorandum To Be Submitted to the Netherlands
Ministry for Foreign Affairs
In memorandum No. 21433 of July 10, 1928, the Royal Ministry of
Foreign Affairs made statements to the effect that American
companies with Dutch capital desiring to obtain and operate leases
on the public lands of the United States run grave risks because of
the absence of legal security. Since, notwithstanding the
explanations on the subject given by representatives of the
Government of the United States in the course of the conversations
which have taken place both between the Royal Ministry and the
American Legation and between the Department of State and the
Netherland Legation at Washington, these statements, which are
incorrect, have been made of record, the Government of the United
States is constrained to make the following comment.
- (1)
- The statement that a company operating an oil concession
granted by the Federal Government on public lands of the United
States must conform to the general laws enacted by the State
where the concession is situated is ambiguous. If it is meant
that petroleum concessions on public lands of the United States
conferred by the Federal Government are regulated by the laws of
the State where a given concession is located, the statement is
absolutely incorrect. It is likewise incorrect to state that a
State may, through its legislation, make it practically
impossible to work a concession on Federal public lands. The
jurisdiction over and control of Federal public lands is
exclusively vested in the Federal Government, and the States
have no control whatsoever over concessions on such
lands.
- (2)
- An American citizen may not contest the legality and validity
of a concession that has been granted on the Federal public
lands unless such person has a prior valid claim in respect of
such land. Such claims as have arisen have in almost all cases
been decided by the appropriate Executive Department of this
Government without recourse to the courts. Furthermore, any such
claims that may exist would be heard by the appropriate
Executive Department before a concession or lease is
granted.
- (3)
- It is not clear what the Royal Ministry means by its statement
that the present Government of the United States can not, with
regard to the enforcement of the Mineral Leasing Act, bind any
other but itself and that a succeeding administration might be
of a different opinion concerning the interpretation and
enforcement of that law, the consequence of which might be that
American companies with Dutch capital would no longer be granted
concessions on the public lands. The Mineral Leasing Act of
February 25, 1920, is a permanent Federal [Page 406] statute and can only be
changed by the Congress of the United States. A lease of the
Federal public mineral lands of the United States is granted for
a period of 20 years, with a right of renewal in the lessee, and
such lease can not be invalidated except for non-compliance with
its terms and then only by means of appropriate legal
proceedings in the proper courts of the United States. The
Government of the United States has always stood for the policy
of the open door and equality of opportunity. Although it is, of
course, possible that the Congress of the United States, at some
future time, may alter existing legislation, just as the
legislature of the Netherlands or some other country may modify
the laws of the respective countries, the American Legation
perceives no reason to anticipate that that position on the part
of the Government of the United States is likely to be changed
thereby.
