871.6363/3–645: Telegram

The Acting Secretary of State to the American Representative in Rumania (Berry)

281. Department has received several communications from Standard Oil New Jersey relating to Romano-Americana78 and other Standard subsidiaries and affiliates in Rumania which raise certain questions connected with execution of the armistice, namely: (1) liftings of Romano-Americana equipment by Russians; (2) transfer of part of current petroleum output of Romano-Americana to USSR under Article 11 of armistice; (3) installations of Standard subsidiaries in Bessarabia and Northern Bukovina; (4) compensation due to Romano for war damage under terms of Article 11; (5) restoration of legal rights and properties to American-owned companies under Article 13.

1.
Standard values at 800,000 dollars casing and other equipment taken by Russians from Teleajen refinery (your despatch 149, March 879). Please check this figure against estimates which have been given to you by Romano-Americana or by other sources. Department has already informed Soviet Government that, according to our view, if equipment removed from premises of American-owned oil companies is not returned, companies are entitled to full compensation from the [Page 653]Rumanian Government if the equipment should be charged to Rumania’s reparations account, or from the Soviet Government if it should not be so charged (reDeptel 56, February 780).
Unconfirmed report indicates Russians have returned some equipment previously removed. Please verify.
2.
Department realizes that American-owned companies, like other oil companies in Rumania, will be required to contribute part of current output for payment of Rumania’s reparation obligation to USSR under Article 11. It is Dept’s view that this must be done on a nondiscriminatory basis and that arrangements must be made for payment of adequate and effective compensation to American-owned companies. Please report in what way Rumanian Government has compensated American-owned companies for products taken.
3.
Department would like to have description and statement of pre-war value of Standard-owned installations, if any, located in territory which Rumania ceded to USSR under Article 4 of the armistice.
4.
Has Rumanian Government established any procedure whereby reparation payments may be made to American citizens and companies under Article 11? Ministry of National Economy’s letter of February 14 (your despatch 157, March 14, Enclosure 1)81 refers to loans for reconstruction but not to compensation for war damage.
5.
What measures has Rumanian Government taken toward fulfillment of obligation under Article 13 to restore pre-war legal rights of United Nations nationals and to restore their property in complete good order?

Repeated to Moscow82 for its information.

Grew
  1. Oil refinery in the Ploesti area owned by the Standard Oil Company of New Jersey.
  2. Not printed; it transmitted statistical information on tubular goods taken by Soviet authorities from the stocks of Romano-Americana (871.6363/3–645).
  3. Same as telegram 261, February 7, to Moscow, p. 648.
  4. Neither printed; the letter had been directed to the Romano-Americana Oil Company and requested certain data of the company so that it could qualify for reconstruction loans from the Rumanian Government (871.6363/3–1445).
  5. Repeated to Moscow as telegram 1210.