856d.6363/80: Telegram
The Minister in the Netherlands (Phillips) to the Secretary of State
[Received 9:50 p.m.]
49. Following is text of note handed to Minister for Foreign Affairs April 19th:
“Excellency, during the last twelve months I have, on several occasions, presented to Your Excellency the very great interest of [Page 537] my Government in the participation by American capital in the development of the mineral oil deposits of the Netherlands East Indies. With your approval I have also had frequent interviews with the Minister of the Colonies on this same subject.
On every occasion I have sought to impress upon the Government of the Netherlands that the real interest of the Government of the United States in these matters lies in the recognition of the principle of mutual or reciprocal accessibility to vital and natural resources by the nationals of the United States and by those of foreign countries, and the belief that the recognition of the principle of equal opportunity is the solution of the future oil problems throughout the world. I have pointed out that the United States has for years carried a burden of supplying a large part of the petroleum consumed by other countries, that Dutch capital has had free access to American oil deposits, and that the petroleum resources of no other country have been so heavily drawn upon to meet foreign needs as the petroleum resources of the United States. I have pointed out that in the future ample supplies of petroleum have become indispensable to the life and prosperity of my country as a whole, because of the fact that the United States is an industrial nation in which distance renders transportation difficult and agriculture depends largely on labor-saving devices using petroleum products.
In these circumstances, my Government finds no alternative than the adoption of the principle of equally good opportunity with the proviso that no foreign capital may operate in public lands unless its government accords similar or like privileges to American citizens; and furthermore I have submitted that in the light of the future needs of the United States such very limited and purely defensive provisions as the above might become inadequate should the principle of equality of opportunity not be recognized in foreign countries.
During the month of January, 1921, I again had an opportunity to discuss the situation with Your Excellency and on this occasion I advised you that in my interviews with the Minister of the Colonies I had gained the impression that the Colonial Department at least was inclined to favor the participation of American capital in the development of the Djambi fields; at the same time I advised you of the nature of the reports which I made to my Government in which I had dwelt upon the favorable attitude of the Colonial Department and furthermore I asked whether the attitude of the Minister of Colonies represented in fact that of Her Majesty’s Government. You will recollect that on January 31st you were good enough to advise me that my impressions had been accurately reported to my Government and that I had not exaggerated the favorable attitude of the Colonial Department which represented that of Your Excellency’s Government.
I have now the honor to inform Your Excellency that I have received a telegram from the Secretary of State to the effect that the Government of the United States is still mindful of the assurances that have been given by you and by the Minister of Colonies relative to the favorable attitude of Her Majesgty’s Government towards American participation in the development of the Djambi fields. While I am not acting on behalf of any particular American company, [Page 538] I am glad of this opportune moment to point out that certain definite propositions which have been made during the last twelve months, furnish sufficient evidence that responsible and experienced American interests are ready and desirous to cooperate with the Netherlands Government in oil developments in the Netherlands Indies.
It is perhaps needless to say that my Government is fully aware of the laws and regulations in the Indies which prohibit foreign companies as such from entering the Colonies for the development of mineral oils. On the other hand, my Government is very greatly concerned when it becomes apparent that the monopoly of such far-reaching importance in the development of oil is about to be bestowed upon a company in which foreign capital other than American is so largely interested.
In this connection, I desire most earnestly to divert [sic] to Your Excellency’s attention the fact that American capital stands ready to assist in the development of the Djambi fields and other oil deposits in the Netherlands Indies.
In conclusion, I venture to say once more that my Government attaches the highest importance to the recognition of the principles of reciprocity and equal opportunity in the solution of the oil problem, as well as the extension to American capital organized under Dutch law of the same privileges and benefits which are granted to other foreign capital similarly organized under the laws of the Netherlands.
I avail myself of this occasion, etc.”