856d.6363/3: Telegram

The Minister in the Netherlands ( Phillips ) to the Secretary of State

105. Department’s despatches 1162 and 6 April 3d and 24 regarding mineral oil concessions and rights in Netherlands India. I have had informal talks with Minister for Foreign Affairs and head of economic section of Foreign Office neither of whom however seemed thoroughly acquainted with situation but promised me full information. No law apparently exists which operates against Americans as such. The old law was repealed in 1912 because of a socialist demand that the Government reserve to itself oil development. It is admitted here that the new legislation works against the interests of both Dutch and foreign capital and is unsatisfactory to all concerned. …

It is evidently important to secure some sort of guarantee from the Colonial authorities that American interests will receive equal treatment and I shall work on these lines unless otherwise instructed.

Phillips