467.11St25/36a: Telegram

The Acting Secretary of State to the Commission to Negotiate Peace

3164. Standard Oil Company of New York fears that oil concessions in Palestine obtained and in process of consummation will be interfered with by British authorities. It is alleged that British authorities have obtained information of Standard Oil concessions by very doubtful methods. Explanation was requested through our Embassy at London but explanation given did not conform with the facts as reported by Captain William Yale. Concession rights have now been divided by British into three categories: concessions obtained and worked before the war; those obtained before the war but not worked; and those obtained during the war. Standard Oil representatives in Palestine report authorities there recommend strong action with British Foreign Office in light of efforts of Zionist interests to exclude outsiders and that British Commander in Chief states that action in the matter depends on instructions from Paris. Further advices from Standard Oil Palestine states that geographical survey has been forbidden and question referred to Foreign Office and also reported that British Foreign Office states they could not permit surveys or prospecting until mandate decided by Peace Conference, and further that no concessions in any territories not actually worked before the war would be recognized. Standard Oil comments on British activities in Mesopotamia under such a ruling. British seem vaguely to refer to some action of Peace Conference in regard to concessions in Palestine. Have you information in this regard? What is status of proposed sales of Ottoman Government property? Suggest advisability of watching such sales in this regard. We are considering sending note to British asking [Page 256] for meaning application and operation of categories and taking as strong a position as possible in regard to rights of our nationals to concessions obtained or in process of consummation before or during the war and requesting the British on account of their position in Palestine to facilitate, if the opportunity offers itself, with the local or superior authorities the consummation of the concessions now in process of being obtained by American nationals. Mr. L. I. Thomas, Standard Oil representative is now in Paris and will give you the facts of the case. We would like any further information you have and your views in the matter.

Phillips