856d.6363/100: Telegram

The Chargé in the Netherlands (Armour) to the Secretary of State

[Paraphrase]

79. I am forwarding today by pouch the reply which I have just received from the Foreign Office.34 Its purport is to answer the points which the Department raised in our last note,35 giving an explanation as to why American action came too late and of the reciprocity policy of the United States which it calls impracticable. The note in conclusion justifies the decision of the Dutch Government in giving the Djambi oil fields to the Bataafsche Company. No new facts are presented in the note and substantially it is another definite refusal to give consideration to the American proposal.

This note as well as our note of May 3035 are to be published here June 24. Shall I cable text? The note is long and rambling and it will take about 1,200 cipher groups to code the message.

In spite of the delivery of the note I am informed by the Foreign Office that the Cabinet crisis is still unsettled and that should the Premier be unable to reorganize the present Cabinet and a new Ministry be formed it is possible that the Djambi oil bill might yet be withdrawn in case the new Cabinet opposed it. While this is possible, it is very unlikely. There is good reason to think that it is Van Karnebeek’s intention to have the bill rushed through the First Chamber soon after the opening of the session on June 28.

Armour
  1. Not printed.
  2. See telegram no. 36, May 27, to the Minister in the Netherlands, supra.
  3. See telegram no. 36, May 27, to the Minister in the Netherlands, supra.