Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

831.6363/8–2444

The Secretary of State to the Venezuelan Chargé ( Lares )

Washington , September 2, 1944.

Sir: I have received your note of August 24, 1944⁶⁶ referring to the proposed installation of certain additional petroleum refining equipment at Curaçao and requesting the support of my Government in expediting the obtaining of necessary materials in order to make possible the carrying out of the terms of the agreements concluded in February 1943 between your Government and certain petroleum companies.

You may be sure that the Government of the United States will make every effort, subject, of course, to military requirements, to facilitate the obtaining of the necessary materials by the interested oil companies in order that they may comply with the terms of the agreements with the Government of Venezuela.

The Government of the United States is fully aware of, and in sympathy with the aspiration of the Government of Venezuela to increase refining capacity on Venezuelan soil, consistent with the agreements concluded by your Government in 1943 with the petroleum companies. My Government is also aware that, as reiterated in your note of August 24, 1944, the Venezuelan Government has never had the intention of interfering in any way with the present refining facilities in the West Indies, but, on the other hand, that your Government is anxious that any increase in the refining facilities to utilize Venezuelan crude petroleum, be established in preference on Venezuelan soil.

With respect to the proposed installation of certain additional petroleum refining equipment at Curaçao in the near future, I believe it is important to emphasize that the additional equipment is accessory to existing equipment and dependent upon it. The equipment under consideration does not constitute a new refinery in the sense of an independent integrated refining plant which could be erected and operated as a separate self-supporting unit. In order to utilize the proposed new equipment in Venezuela, it would be necessary to engage in a very much larger and longer-term project to provide first the basic facilities upon which this accessory equipment would depend. Because of an urgent need for additional supplies of 100-octane aviation gasoline and Navy special fuel oil, the installation of the new equipment at Curaçao was authorized by the Armed Forces of the United States under the United Nations supply program, and was recommended for high priority for materials by other agencies of the Government of the United States.

The new equipment not only will be used in large part to re-run semi-finished products from the existing refining facilities at Curaçao, but in addition will increase the total capacity of those facilities so that there will be increased over-all output of 2,200 barrels a day of 100-octane aviation gasoline, plus 3,900 barrels a day of 87-octane aviation gasoline, and 4,600 barrels a day of 80-octane military motor gasoline, and also 32,400 barrels a day of Navy special fuel oil. This increase is based upon a contemplated daily input of 34,500 barrels of Lake Maracaibo crude petroleum, and depends in addition on 23,000 barrels daily of unfinished and blending components from existing facilities in the Curaçao refinery.

Consideration was of course given by the appropriate agencies of this Government to the possibility of incorporating this increased refining facility as an addition to the existing refineries in Venezuela. Careful study, however, demonstrated that the addition of this unit to the Curaçao refinery would result in a greater flexibility in the utilization of a wider range of crude petroleum with a consequent more favorable ratio of gasoline to fuel oil and a relatively smaller expenditure of critical materials, as well as advantages in the time factor. I believe that your Government will agree that these considerations indicate that the addition of this equipment to the existing refining facilities in Curaçao is justified by its immediate and direct assistance to the war effort.

Accept [etc.]

For the Secretary of State:

A. A. Berle, Jr.

66. Not printed; the Venezuelan Chargé complained that the Petroleum Administration for War was supporting a plan of the Shell interests to build a new refinery on Curaçao contrary to agreements between the Government and the Company (831.6363/8–2444).