875.6363/118: Telegram

The Secretary of State to the Ambassador in Great Britain (Harvey)

[Paraphrase]

266. Refer to Department’s written despatch no. 827, March 14. The American Chargé in Albania has informed the Department that it has been reported that the British Minister has informed the Albanian Prime Minister that unless the Anglo-Persian Oil Company’s [Page 395] contract is accepted and ratified in its present form during the present session of the Parliament, which will adjourn on October 13 [September 30], he would withdraw immediately, by this action virtually severing diplomatic relations. A previous unconfirmed report has come to the Department that a threat had been made to the Albanian Government that if the Anglo-Persian’s oil concession were not granted the capitulations would be reimposed and British support in the matter of the delimitation of the boundaries of Albania would be withdrawn.

Information received from Tirana indicates that the Anglo-Persian Company’s draft concession is not as favorable in many respects as are the offers of the two American oil companies which are competing for a concession and that if the matter were to be considered on its merits and without the imposition of political pressure, a contract of the nature proposed by the Anglo-Persian Company would not now be accepted by the Albanian Government.

I desire that you should discreetly and orally bring it to the attention of the British Foreign Office that reports have apparently been circulated in Albania which indicate that pressure of a political nature in favor of British oil interests is being brought to bear on the Albanian Government, and that while the Department trusts that these reports have no foundation it feels nevertheless that they should be brought candidly and confidentially to the attention of the British Government. Here you may refer guardedly to the reports mentioned above. You may then add that the interest of the American Government in this matter is maintenance of the Open Door and equality of opportunity in Albania and that the oil-concession question should be considered on its merits alone, without political pressure being brought to bear.

Repeat to the American Legation in Albania as the Department’s no. 33 and report promptly giving Department and Legation information obtained.

Hughes