824.6363 St 2/443

Memorandum of Conversation, by Mr. Paul C. Daniels of the Division of the American Republics

Participants: Mr. W. S. Farish, President of the Standard Oil Company of New Jersey
Mr. Palmer of the Standard Oil Company
Mr. Duggan
Mr. Flournoy8
Mr. Daniels

Mr. Farish agreed to accept the second paragraph of section 3 of the draft agreement of November 29, 1939, with the addition of the words “developed and undeveloped”, so that that paragraph would read as follows:

“In determining the questions under paragraph 2 (a) hereof the Commission will take into account the right granted to the Company under its contract to extract oil from the developed and undeveloped [Page 516] areas covered by the contract and to transport, refine and sell the same.”

Mr. Duggan undertook to ascertain from the Bolivian Minister whether the proposed modification would be agreeable to the Bolivian Government, and also to find out whether the Minister would agree to eliminating from the draft agreement any reference to the proposed statements which might be issued by the Government and the Company at the time of signing the agreement. It was agreed that the Department would communicate with the Company following the conversation with the Bolivian Minister.

  1. Richard W. Flournoy, assistant to the Legal Adviser.