811.6363/49

The Secretary of State to the Secretary of War (Weeks)51

My Dear Mr. Secretary: Adverting to my letter of May 11, 1921, and other correspondence, relative to the Philippine Petroleum Act, I beg to inform you that I have received from the British Embassy at Washington a copy of a memorandum on the petroleum situation which has been published by the British Government.52

[Page 552]

On page four of this memorandum the following observations occur:

“Regulations were introduced last year in the Philippines restricting the exploitation of certain lands to citizens of the United States and of the Philippines. In this action, in almost her only detached territory, the United States appears to be adopting the very policy, and probably for the same reason, for which Great Britain has been so loudly condemned.”

In replying to the Embassy’s note with which the memorandum was enclosed,53 I took occasion to make the following statements regarding the policy of this Government relative to petroleum legislation in the Philippines:

“Since the legislation referred to has been interpreted to indicate a change of policy on the part of this Government, I take pleasure in conveying information that may serve to make clear the present attitude of this Government relative to participation by foreign interests in petroleum development in the Philippine Islands.

“The Philippine Legislature enacted in 1920 an act providing that petroleum development in the Philippines should be confined to citizens of the Philippine Islands or of the United States and to associations and corporations wholly composed of citizens of the Philippine Islands or of the United States or both. This act was approved by the President of the United States on August 31, 1920. Soon after the enactment of the law, the authorities of the Philippine Islands realized the necessity of amending the restrictive feature of Section I; and the Government of the United States recommended in December, 1920, that this section be so amended as to conform to the reciprocity provision of the United States general leasing law of February 25, 1920. At the last session of the Philippine Legislature, an amending bill was passed, the object of which was to relax substantially the restrictions embodied in the original act. Nevertheless, it is believed that the proposed amendment does not sufficiently meet the situation; and this Government intends to take all appropriate steps with a view to bringing about at the next session of the Philippine Legislature in October a further amendment of the act so that it may conform to the reciprocity provision of the United States general leasing law.”

I am [etc.]

Charles E. Hughes
  1. For the attention of the Chief of the Bureau of Insular Affairs.
  2. Despatch to His Majesty’s Ambassador at Washington enclosing a Memorandum on the Petroleum Situation (London, H. M. Stationery Office, 1921). MisceUaneous No. 17. Cmd. 1351.
  3. Not printed.