856d.6363/15: Telegram
The Minister in the Netherlands (Phillips) to the Secretary of State
[Received 7:37 p.m.]
269. Your 587, October 6, 2 p.m.
Have had a long conference this morning with the Minister for the Colonies under whose jurisdiction comes the question of oil development in the Dutch East Indies. He tells me definitely that the Government will conclude an agreement with the Bataafsche Petroleum Maatschappy for the development of the Djambi concessions under Government control and that American capital can only come in by an agreement between it and the Bataafsche Company. In reply to my inquiry whether he would urge the Bataafsche to include American capital he gave me his assurance he would do so. It is very definitely the policy of the Dutch Government to continue to control all oil development through Government reserve and in future to announce publicly the facts concerning a specific development and to accept the terms of the best bidder. The Minister said it was impossible to return to the status of the “old law” and he wondered whether the United States would not have to adopt also the policy of Government reserve for oil.
The representative of the American Oil Company mentioned in my 237 August 27, 6 p.m., has made formal application for participation in the Djambi concessions but has not received a definite answer. I understood from the Minister that the reply would be in the negative but that he would suggest the opening of negotiations between the representative and the Bataafsche Company.