892.6363/15
The Chargé in Siam (Willliams) to the Secretary of State
[Received January 26, 1922.]
Sir: I have the honor to advert further to the Department’s mail instruction No. 9, of September 6, 1921,12 relative to the possible existence of petroleum deposits in northern Siam.
The Legation was instructed that steps had been taken by the Department to notify to responsible American oil companies the opportunity apparently offered in Siam. I now have the honor to report that Mr. H. D. Warner, representative in Bangkok of the Standard Oil Company of New York, has been desired by Mr. W. B. Walker, Manager of the Batavia Office,13 under whose jurisdiction the Bangkok branch is placed, to consult with the Legation in the connection. Mr. Walker has stated in a code telegram that pressure was being exerted to induce the Siamese Government to grant exclusive concessions, and has enquired whether the Legation will support an application upon behalf of the Standard Oil Company.
Mr. Warner approached the Legation immediately upon receipt of the Batavia instruction, and requested information as to the position which obtained. It was explained to him in a general way that the petroleum deposits in question were still under investigation by the competent Department here, and that until more complete data had been assembled the grant of concessions by the Government was unlikely. Immediate application by Mr. Warner to the Commissioner-General of Railways was hot at present necessary; it was suggested, instead, that conference with Prince Purachatra should occur upon the arrival here of Mr. Walker, the twentieth instant, which would furnish occasion for such enquiry. Meantime, Mr. Warner was informed, the Legation would take such measures as might be advisable and proper to ensure equality of opportunity to American citizens and corporations in Siam. The foregoing was subsequently confirmed in writing.
It is my intention that during Mr. Walker’s visit to Bangkok, formal application will be made by him directly to the Prince of Kambaeng Bejra, for such concessions as may be sound and equitable in the development of Siamese petroleum resources. The Legation will not be involved therein, except insofar as it may be opportune [Page 888] at some future date to mention the application informally and casually to the Minister for Foreign Affairs. The Legation, however, will be kept informed by Mr. Warner as to the progress of the conversations, and in the event that diplomatic considerations arise, will be prepared to acquaint the Department without delay of these circumstances.
The Legation’s representations, referred to in my despatch No. 198, of December 1, 1921, will possibly stiffen the determination of the Foreign Office to maintain equality of opportunity in the grant of concessions. Such policy is in the long run conducive of Siam’s interests and, from the international viewpoint, preferable to the Siamese themselves. To this end, the Foreign Office no doubt has welcomed diplomatic pressure from each aspect of the situation.
I believe it is unlikely that further events in this regard will be reported during the next fortnight or three weeks. The American viewpoint and the position of the Legation have now been made clear from every angle of the subject.
I have [etc.]