884.6363 African Exploration and Development Corp./13: Telegram
The Secretary of State to the Ambassador in the United Kingdom ( Bingham )
241. Representatives of the Standard Vacuum Oil Company called to-day and informed the Department of the negotiation by Rickett, on behalf of the African Exploration and Development Company, a recently created subsidiary of theirs, of the oil concession in Ethiopia which has received world-wide publicity and occasioned political agitation during the past 3 days. This was the first information which the Department had had from any source except the press and reports of the last 3 days from abroad with regard to any phase or feature of this transaction. The Standard Vacuum representatives affirmed that they had been interested in this matter for some time back and had proceeded with it purely as a commercial transaction. They expressed surprise at the excitement which it had caused and asked the Department’s advice as to what they should do under the circumstances. The Department officially advised that they take immediate steps to cancel the contract and Department expressed a favorable opinion of a draft statement which these representatives had prepared giving the history of the concession and adding a declaration of their intention to cancel it.
In the conversation which led to that conclusion, the Department emphasized the embarrassment which this transaction had occasioned to the American and other Governments which are interested in the cause of peace.
I have just given out the following statement to the Press:
“Mr. George S. Walden and Mr. H. Dundas, Chairman of the Board and Vice President, respectively, of the Standard Vacuum Oil Company, called on September 3, 1935, to make known to the Department that their Company is the owner of an extensive oil concession granted by the Emperor of Ethiopia on August 29th, last, to the African Exploration [Page 782] and Development Company, a subsidiary of the Standard Vacuum Oil Company, and to seek the Department’s advice on the situation created by the grant.
The officials of the above-mentioned Company were informed that the granting of this concession had been the cause of great embarrassment not only to this Government but to other governments who are making strenuous and sincere efforts for the preservation of peace.
In the circumstances, the Company officials were informed of the views of this Government that it was highly desirable that the necessary steps should be taken at the earliest possible moment to terminate the present concession.
The Secretary of State was later informed by the above officials of the Company that the Company has decided to withdraw from the concession; is so notifying the Emperor, and is giving a statement to the press to that effect.”
Please convey a copy of this statement to the Secretary of State for Foreign Affairs and repeat to Paris as Dept’s 357 for transmission to the Foreign Office; also repeat to the Embassy at Rome as Dept’s 142.