856d.6363/575

The Secretary of State to the Minister in the Netherlands (Tobin)

No. 676

Sir: With reference to the Legation’s despatch No. 1873, dated April 29, 1929, concerning the visit of Mr. Loomis, of the Standard Oil Company of California, to The Hague and his failure to obtain certain oil concessions in the. Netherlands East Indies, your attention is directed to the reported statement of Dr. Six, Secretary General of the Colonial Ministry, that the Atjeh districts Nos. 1 and 2, in which the Standard Oil Company of California was interested, have been reserved for the Koloniale (Standard Oil Company of New Jersey), the Royal Dutch and the Netherland Government, and to the rumor that oil rights in the Indies had been apportioned between the Royal Dutch and the Standard Oil Company of New Jersey.

The Department is interested in Government regulations, restrictions and agreements, private or otherwise, affecting in any way American participation in the exploitation of the oil fields of the Dutch East Indies. You are therefore instructed to investigate discreetly and report as soon as possible whether any such agreement exists, and, if so, who are the parties thereto, and what areas in the Dutch East Indies the agreement covers, particularly whether the whole of the Island of Sumatra or only the Atjeh districts; you will indicate on maps, if possible, the areas giving size and location affected by this agreement or any Government regulation or restriction concerning the exploitation of mineral oil in the Netherlands East Indies.

I am [etc.]

For the Secretary of State:
W. R. Castle, Jr.