856d.6363/83: Telegram

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

[Paraphrase]

53. Legation’s telegram no. 48 of April 22, 4 p.m.22 An amendment to divide the Djambi oil concession between the Bataafsche and Standard Oil companies, which was introduced today, was voted down 43 to 37. A contributory reason for the defeat of the amendment [Page 541] was, in my opinion, the fact that Vice President Asche of the Standard Oil Company did not remain at The Hague to care for his own interests. The original bill was approved by a vote of 49 to 30. It has yet to pass the first chamber which can reject but not amend it.

This afternoon Mr. van Karnebeek again told me that the Netherland Government had not changed its policy and still hoped that American capital would participate in the further development of the East Indian oil fields. He said that the vote with respect to the Djambi region should not be regarded as giving the Bataafsche Company a monopoly but rather as an approval of the method of exploiting the petroleum fields under the supervision of the Government. Van Karnebeek was confident that in the immediate vicinity of the Djambi there were other rich oil fields which should be made available for development under the same conditions as those granted for the Djambi.

In view of the strength of the opposition it seems to me that if we really are anxious to gain a foothold in the East Indies now is the time to test the sincerity of the statements cited above by having American interests immediately apply for opportunity to assist the Netherland Government in developing other territories. Although I regret the adverse vote I felt that it would be very unwise for me to oppose the bill publicly and thus involve myself in what was a very bitter debate.

Phillips
  1. Not printed.