884.6363 African Exploration and Development Corp./1: Telegram
The Chargé in Ethiopia (Engert) to the Secretary of State
[Received 1:10 p.m.]
84. Petroleum concession was signed this morning between the Ethiopian Government and the African Exploration and Development Corporation registered in Delaware and understood to be a subsidiary of the Standard Oil Company of New Jersey. No announcement to be made until tomorrow.
Concession is for 75 years and covers entire area east of line from Lake Rudolph to Hawash Railway Bridge and thence due north to Eritrea. Company will pay annually 25,000 pounds gold coin or bullion or equivalent thereof and royalty one shilling sixpence per ton for first 25 years and more thereafter. Company shall within 1 year make geological survey and within 5 years begin drilling operations until sufficient petroleum has been discovered to meet all Ethiopian requirements plus 2 million and a half tons annually for export. As soon as pipeline commercially justifiable it shall be constructed to a suitable port. If required by the Government the company shall refine enough kerosene and fuel oil for local consumption. Company may erect and maintain its own telegraph, telephone and wireless throughout Ethiopia without Chargé, import free of duty for 21 years all machinery, et cetera, required for the concession and its properties, exports, profits, et cetera, shall be tax exempt. If the company cedes the contract to a foreign government it shall be without indemnity.
Full text by mail.