File No. 5301/2.
Minister Wilson to
the Secretary of State.
American Legation,
Brussels, March 7,
1907.
No. 157.]
Sir: I have the honor to report that recently
the Continental Petroleum Company, a Belgian corporation dealing
exclusively in American lubricating oils, complained to this legation
against alleged discrimination in the specifications governing the
submission of bids for furnishing oils to the Belgian Government
railways.
The specific ground of complaint was the insertion in the specifications
of supply bids the requirement of “Russian” origin. A copy of the cahier
des charges containing on page 34 the specifications to which objection
was taken is transmitted herewith.
As it appeared to me that the objections of the Continental Petroleum
Company were well taken, I addressed a note (copy inclosed) to the
Belgian foreign office, calling attention to the discrimination.
I am just in receipt of the reply of the minister (copy and translation
inclosed) from which it will be seen that the justice of the protest
made is recognized, and the discrimination will be removed.
I have, etc.,
[Inclosure 1.]
Minister Wilson
to the Minister for Foreign
Affairs.
American Legation,
Brussels, December 17,
1906.
Mr. Minister: Mr. F. Petit, president of
the Continental Petroleum Company, a Belgian corporation, has called
the attention of this legation to an alleged discrimination against
American lubricating oils by the department of railways in the
specifications of the rules for the submission of supply bids on
Wednesday, December 19.
[Page 78]
In his letter addressed to this legation, and which is inclosed to
you, Mr. Petit states that in stipulating that all bidders
submitting propositions are limited to lubricating oils of Russian
origin, the minister of railways has discriminated against American
oils.
He affirms that while his company is prepared and willing to furnish
oils which in practical use will fully meet the usual tests, giving
equal if not better results than the oils of Russian origin, the
fact that the oils which his company furnishes are of American
origin disqualifies it as possible bidder.
I inclose also a copy of the specifications referred to, which is
marked on page 34.
May I ask your excellency to be good enough to inform me, after
having ascertained the views of your colleague in the department of
railways, whether in making use of the word “Russian” in the
specifications it was the intention to exclude the American oil
product, which the representatives of the Continental Petroleum
Company assure me will meet all the tests equally as well, if not
better, than the Russian oil.
I avail, etc.,
[Inclosure
2.—Translation.]
The Minister for Foreign
Affairs to Minister Wilson.
Mr. Minister: I have not failed to bring to
the knowledge of the minister of railroads, posts, and telegraphs,
the communication which your excellency addressed to me on the 17th
of December last, regarding a complaint made by the Continental
Petroleum Company in reference to the specification “Russian crude
mineral oil for lubricating “contained in the rules for the
submission of bids for supplying oils to the administration of
Belgian railroads.
My colleague writes me that the rules for the submission of bids,
special number 837, relative to lubricating oils, the supplying of
which was decided on June 6, 1906, simply mentioned “crude mineral
oil” and thus allowed the products of American origin to compete
with those of Russia.
In this contest the Continental Petroleum Company was awarded the
bid. But the American oils delivered by this company gave rise to
serious complaints, such as overheating of the axles on locomotives
and passenger and freight cars.
The Belgian authorities continue to believe, despite the assertion to
the contrary by the said company, that the oils previously employed
were of a superior quality. It was under these conditions that, in
view of the award of December 19, 1906, the department of railways,
posts, and telegraphs was obliged to insert in the rules for the
submission of bids the stipulations “Russian crude mineral oil for
lubrication.”
In advising me of what proceeds, Mr. Liebaert adds that his
department is now studying the new conditions which will be inserted
in the contracts in order to be sure that the lubricating oil
accepted, whether it be of American, Russian, or other origin, will
give good results. When these conditions are determined, a test will
be made, and if the results are satisfactory, the matter will be
definitely decided.
I have the honor to return to your excellency the letter of the
Continental Petroleum Company which you have sent me.
I take, etc.,
