856d.6363/130
The Chargé in the Netherlands (Armour) to the Secretary of State
[Received July 28.]
Sir: Referring to the Department’s Instruction No. 180, of June 22d last,38 transmitting the copy of an article by Mr. Paul Scott Mowrer, published in the Washington Evening Star of June 13, 1921, regarding a new oil trust formed in Japan now said to be attempting to obtain concessions in the Dutch East Indies on terms similar to those already granted to the Bataafsche Petroleum Company, I have the honor to state that I have been able to gather the following information regarding the transaction:
In the Government’s reply to the First Chamber’s memorandum regarding the Djambi Oil Bill, M. de Graaff mentioned the fact that an application had been made by the Japanese Government, through its Minister at The Hague, to be permitted to participate in the development of the Mineral oil fields in the Dutch East Indies (See the Legation’s Despatch No. 610, of June 29, 1921, Page 2, sub (1); also Enclosure Number 1 to Despatch No. 610, Page 2, paragraph 139). M. van Karnebeek, in his speech in the First Chamber during the debate on the Djambi Bill, also referred to the Japanese proposal, at the same time reading to the Chamber the full text of the note which he had received from the Japanese Minister, as follows:40
My government desiring to know whether it will be possible for Japanese to obtain a concession for the exploitation of the sources of petroleum in the Dutch East Indies, I will be exceedingly grateful to our Excellency if you will be so land as to inform me of the intention of the Royal Government concerning this subject.
[Page 547]I should also be very much obliged to Your Excellency if you would be so kind as to indicate to me, in that case, the conditions under which such a concession will be granted to foreigners.
M. van Karnebeek added, upon concluding the reading of the note, that a routine reply had been sent to the Japanese Minister setting forth the conditions under which Japanese capital would be permitted to participate in the development of oil in the East Indies.
. . . . . . . . . . . . . .
I have [etc.]