467.11St25/47: Telegram

The Ambassador in Great Britain (Davis) to the Secretary of State

3432. In response to representations based on your telegraphic instructions 6138 October 30th, 8 p.m. Foreign Office advises that in its opinion

“the provisional character of the military occupation does not warrant the taking of decisions by the occupying [power] in matters concerning the future economic development of the country. Accordingly our policy has been to prohibit the initiation of any new undertakings or the exercise [by] concessionaires of rights which they may have acquired but not taken advantage of by [before?] the war.

This view has equally governed our attitude in regard to investigations and surveys which private individuals or firms may wish to [undertake in] occupied enemy territories and our action in prohibiting this class of operations has been further ruled by the principle that nothing should be done which might in any way compromise the future authorities of the country to whom we consider should be left the decision as to the methods and measures necessary to be adopted for insuring the development of the mineral resources of the territory which they will be called upon to administer.

We have also felt that to open the occupied territories to prospectors during temporary military tenure would be most undesirable as it would inevitably lead to a rush of speculators and others who under the guise of simple investigation would aim at securing definite and exclusive rights or openings [options?] from native landowners. Further, while a certain amount of freedom of communication with towns and ports in Mesopotamia and Palestine has been allowed in the interests of trade it would be quite incompatible with the conditions of war which still prevail in these countries that this freedom should be extended to individuals who desire to travel and carry out investigations in the interior.”

Foreign Office further advises that a representative of the Shell group who visited Mesopotamia in the early part of the year without knowledge or consent of Foreign or India Offices was immediately recalled. Two members of his party were left to repair certain refineries at Quaiyara for the use of military and transport but will be recalled as soon as (they?) are no longer needed for that purpose. At least 11 applications have been refused from British firms and syndicates [Page 261] for leave to investigate various parts of occupied territory. Foreign Office proposes to adhere unflinchingly to this policy so long as existing conditions prevail.

Davis