Memorandum by the Assistant Chief of the Treaty Division (McClure)

Mr. George Cretziano, the Rumanian Minister, called at the Treaty Division this afternoon for the purpose of discussing with the Chief of the Division a certain point in regard to the treaty of arbitration under negotiation between the United States and Rumania. In the absence of the Chief, the Assistant Chief talked with the Minister.

The Minister brought with him his carbon copy of the note of August 23, 1928,7 which the Rumanian Chargé dAffaires Prince Sturdza, had, in the Minister’s absence, transmitted. The Minister stated that during his recent visit at Bucharest, his Government had instructed him to insist on one point only among the alterations suggested by Rumania. This point is contained in the note of August 23, and consists of an addition to Article II as follows:

“The provisions of this treaty, which concerns only differences between Government and Government, shall not be invoked in respect of any dispute the subject matter of which”

and so on as is contained in the lettered paragraphs of Article II of the draft submitted by this Government to the Rumanian Government.

I told the Minister that this question was under consideration by the Department, but that a decision had not been reached.

The Minister stated that possibly the new Government, resulting from the recent change of Government in Rumania, might view this suggestion in a different way from that of the retiring Government, which was still in power when he left Bucharest. I told the Minister that I was sure the Chief of the Treaty Division would do all that he could to expedite a reply to the Legation in this matter.

The addition proposed by Rumania as outlined above is one which does not seem to be acceptable by this Government. There would seem to be reason for taking seriously the Minister’s remark that the new Government in Rumania may take a different view in the matter. The proposed change is rather obviously intended to avoid possible arbitrations which might grow out of disputes between foreign oil operators in Rumania and the Rumanian Government. As the new Rumanian Government is understood to represent primarily the interests of the small agriculturists rather than of the great special interests such as those which might wish to prevent a solution of the outstanding questions between American petroleum interests operating [Page 751] in Rumania and the Rumanian Government, it may possibly be that our refusal to accept the alteration will not long interfere with the signing of the treaty.

W[allace] McC[lure]
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