856d.6363/74: Telegram

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

[Paraphrase]

45. Your 21, April 12, 6 p.m. I would find it helpful in dealing with the Foreign Office if I could know in advance the general attitude of the Department in case the Netherland Government and [Page 536] the Bataafsche Petroleum Company decline to change their attitude. Could I be authorized to intimate that the American Government would regard an unfavorable reply as practical evidence that capital from the United States was not wanted in the Netherland East Indies, and that therefore the Department would feel obliged to advise American financiers and business interests to that effect? It is possible that such a warning might have a good effect, as there is great need for American capital in all lines of business except petroleum development.

Phillips