Pauley Files

No. 1324
Proposal by the United States Delegation1

U. S. Proposal on Oil for Western Europe

In order to alleviate as far as possible the present critical situation in oil supply and shipping requirements for Western and Mediterranean Europe, it is agreed as follows:

That such quantity, not exceeding 50,000 barrels per day, of crude or refined oils as may be found to be available in Hungary, Austria and Rumania shall be designated for movement westward for the use of the Allies of Western Europe upon a purchase basis to be negotiated.
To that end representatives of the U. S., U. K., and U. S. S. R. shall be designated to meet as early as possible with the purpose to survey availability of, to negotiate arrangements for, and to determine the maximum availability of overland and water transportation for the appropriate movement and distribution of said crude or refined oils.

The U. S. points out again that present shipping of approximately 300,000 barrels per day of oil to supply Western and Mediterranean Europe is an extremely heavy burden to the Anglo-American sources of supply. As well it represents a heavy draft on available tank-ship carrying capacity, requiring approximately 200 Type B tankers. Obviously, any assistance which might be obtained to diminish these supply and shipping requirements, however small, will be extremely helpful in the world picture, and particularly in the successful prosecution of the Japanese war. Oil supplied from the above named sources would greatly help my Government in the circumstances. Moreover it would help the U. S. to meet requested deliveries by our Allies now pending.

  1. Another copy of this proposal is identified as the “U. S. proposal submitted to the subcommittee.”