856d.6363/12: Telegram
The Secretary of State to the Minister in the Netherlands (Phillips)
555. Your 237 August 27, 6 p.m.
You may informally state to the Netherlands Government that this Government’s interest is in the recognition of the principle of mutual or reciprocal access to vital natural resources by nationals of this and foreign countries. This Government is frank in saying that it believes that the granting of concessions to a single company covering all the best areas of the Dutch West [East?] Indies can hardly fail to be construed, whether rightly or wrongly, as a measure of exclusion and would at least seem to compromise in that region the principle of equal opportunity which it is hoped may be a solution for the future oil problem throughout the world.
It is felt circumstances require this country to give close attention to the question of adequate petroleum supplies for its future needs. At present the best estimates obtainable show the United States possesses approximately 12% of the natural petroleum resources of the world, while on the other hand its current annual needs approximate 70% of the world’s annual supply. In an industrial nation such as the United States, where distance renders transportation difficult and agriculture largely depends on labor saving devices using petroleum products, ample supplies of petroleum are indispensable. Employment of motor conveyances has become a factor in the economic life of this country, the importance of which it is difficult to estimate. It may also be noted that the petroleum resources of no other nation have been so heavily drawn upon to meet foreign needs. This country has carried for years the burden of supplying a large part of the petroleum consumed by other countries.
Until very recently nationals of other countries have enjoyed complete and equal freedom of access to petroleum deposits in the United States. This privilege has been increasingly availed of in recent years. At present no foreign national is excluded from operating in American public lands unless his Government denies similar or like privilege to American citizens. It must be apparent, however, that in light of the future needs of the United States such very limited and purely defensive provisions might become inadequate in case the principle of equality of opportunity is not to prevail in foreign countries.
It is felt necessary for the United States to determine a national policy which, with due regard for its own needs, will be strictly [Page 277] fair and just to other nations. It is in this spirit that the above considerations are brought to the attention of the Netherlands Government. It is not desired, however, that the above views be interpreted as a special interest in behalf of any particular American individuals or corporations.