File 2249/1915 Pt 4 ‘Oil: Mesopotamia & Persia. (General File) 1920–24’ [‎65v] (130/484)

produces some 70 per cent, of the world’s output, besides which United States companies,
who own at least three-fourths of the Mexican output, are estimated to produce a
further 12 per cent, of the world’s output. This overwhelming proportion, over 80 per
cent., of the petroleum production of the world is under American control, and the
predominance of the United States in regard to oil production is assured for many years
to come. _ There is, in any case, no justification for supposing that Great Britain, whose
present oil resources are altogether insignificant in comparison, can seriously threaten
American supremacy, and any prophecies as to the oil-bearing resources of countries at
present unexplored and quite undeveloped must be accepted with reserve.
10; The nervousness of American opinion concerning the alleged grasping activities
of British oil interests appears singularly unintelligible in view of these facts, and yet
it is notable that the United States, notwithstanding their assured supremacy, have
taken powers to reserve for American interests the right to drill for oil on United
States domain lands and have on various occasions used their influence in territories
amenajple to their control with, a view to secure the cancellation of oil concessions
previously and legitimately obtained by British persons or companies. Thus, on the
occupation of Hayti by United States forces in 1918, the United States Administration
refused to confirm an oil concession which had been approved by the Haytian Govern
ment and Legislature and for which the caution money had been deposited in the
republic ; and more recently the United States representatives at San Josh urged the
present Costa Bican Government to cancel all concessions granted by the previous
Government, the only concession in question being an oil concession granted to a British
subject.
M' .Mery different has been the attitude of the British Government. In assuming
the administration of the occupied Turkish territories they have remained fully alive
to their obligation, as a temporary occupant, to protect not only the natural resources
of the country against indiscriminate exploitation, but also the absolute freedom of action
w ich the authority to be created eventually for administering those regions would
have rightly expected to enjoy..
thhs obligation, His Majesty’s Government have found it necessary
to suspend during the period of occupation the grant of facilities and opportunities to
ritish as well as to other private interests to investigate the natural resources of the
country with the view of acquiring new claims or strengthening old ones, and there is
no reason for assuming that the Administration either of Mesopotamia or of Palestine
has at anytime failed to carryout the policy which has been laid down by His Majestv’s
Lrovernment. J J
•/n" ^ re ^ er propositions enumerated by you on which discussion is
invited and which have been put forward with the object of guaranteeing to the
commerce of all nations the praccical fulfilment in the mandated reMons of the
principles of equal treatment in law and in fact. Beference is made in this connection
to the desirability of the adherence of the mandatory Power to the principles expressed
and agreed to during the peace negotiations at Paris, as well as to the principles
embodied m mandate (A) prepared in London by the Commission on Mandates, for
adoption by the League of Nations.
14 1 would first point out that, in consequence of a divergence of views, the
Commission on Mandates proceeded no further with the draft of the mandate form' (A)
which was consequently abandoned. v
c * ra ^ t m;tn dates for Mesopotamia and for Palestine, which have been
prepared with a view to secure equality of treatment and opportunity for the commerce
citizens and subjects of all States who are members of the League of Nations wifi
when approved by the Allied Powers interested, be communicated, to the Council of the
League of Nations. In these circumst mces, His Majesty’s Government, while fully
appreciating the suggestion for discussing with the United States Government the
various propositions mentioned by you, with which they are in full sympathy are none
the less of ihe opinion that the terms of the mandates can only properly be’discussed
at the Council of the League of Nations by the signatories of the Covenant.
m i • u the matter of concessions granted in the mandated territories by the
lurkish Government, His Majesty’s Government fully agree with the views of the
United States Government that due consideration must be given to all rio-fits legally
acquired before the outbreak of hostilities. Provision lor the consideration and
recognition under certain conditions of concessions situated in territories detached from
the 1 urkish Empire lias, moreover, as you no d >ubt know, been made in the treaty of
peace with Turkey. His Majesty’s Government are aware that certain rights were
acquired in Palestine before the war by American citizens, while British interests, such