846b.6363/8: Telegram

The Chargé in Great Britain (Atherton) to the Secretary of State

135. Department’s 61, March 28, 6 p.m. Following Foreign Office note received today:

“I have the honor to inform you that His Majesty’s Government are prepared in principle to consent to the participation of United States interests in this concession, subject to their being satisfied as to the conditions on which United States capital will participate, and in particular as to the nationality of the operating company, of its chairman and directors, and of the personnel who will be employed in the Islands. His Majesty’s Government would suggest that these conditions should form the subject of direct discussion between representatives of the Eastern and General Syndicate, as being the existing concessionaires, and the Colonial Office.

With regard to the oral request which you made on April 3rd to a member of this Department for a statement of the policy of His Majesty’s Government with regard to the holding and operations in territories such as the Bahrein Islands, of petroleum concessions by foreigners, I have the honor to inform you that His Majesty’s Government feel bound to reserve to themselves the right to consider on its merits, and in the light of the circumstances obtaining at the time, each proposal for the holding or operation [of] petroleum concessions by foreigners in such territories, and that they therefore [Page 82] find themselves unable to make any general statement of their policy on this question such as the United States Government desire.”

I understand Major Davis85 is on the Continent and shall endeavor to convey substance of this note to him.

Atherton
  1. Harry G. Davis, of the Gulf Oil Co. of Pennsylvania.