765.752/4

The Minister in Albania (Grant-Smith) to the Secretary of State

No. 274

Sir: I have the honor to acknowledge the receipt of the Department’s instruction No. 83 of March 25th last, with regard to the advisability of undertaking the negotiation of a treaty in the near future to define and regularize the relations between the United States and Albania.

The relations between the two Governments are now based on the notes exchanged on June 23rd and 25th, 1922, between the American Commissioner, the Honorable Maxwell Blake, and the Albanian President of the Council (of Ministers)—Minister for Foreign Affairs, H. E. Monsieur Xhafer Ypi, copies of which were transmitted to the Department with the former’s despatch No. 3 of August 2, 1922.12 As will be seen from them the Albanian Government engaged itself, in return for official recognition on the part of the Government of the United States, to

(1) “recognize the passports given by the authorities of the United States of America to persons of Albanian origin, who are naturalized Americans in conformity with the American laws concerning nationalities”

and,

(2) in case a commercial treaty should be concluded between the Government of the United States and that of Albania, to insert in the said treaty, the ‘“most favored nation clause”’ … and, pending the conclusion of the treaty above mentioned, the American interests in Albania will receive the most favored nation treatment. Furthermore, the Albanian Government is ready to show all kinds of facilities to the installation of American capital in Albania, as well as to accord concessions to American concerns”.

The Department is aware of the difficulties which have been encountered in our efforts to insure most-favored-nation treatment for American corporations in Albania in spite of the fact that certain ones were invited by the Albanian Government to submit offers for the development of the petroleum resources of the country. On several occasions the representatives of those corporations have been on the point of withdrawing from the field but on each occasion the Albanian Government has urged them to remain. …

. . . . . . . . . . . . . .

[Page 317]

The terms of the notes above referred to, reinforced by the declarations made by the United States on March 2, 1923,13 in support of the principle of the “open door”, and accepted by the Albanian Government without demur, would seem to afford the United States a sufficient basis for carrying on the relations between the two countries until a more propitious moment should arrive. In order that the Government of Albania might have no shadow of excuse on account of frequent changes of Ministry, lack of organization, inexperience or otherwise, for not giving due weight to the claims of the United States in their negotiation of treaties with the other Powers, I ventured to address a note to the Minister for Foreign Affairs under date of April 17, 1924, (a copy of which is herewith enclosed) wherein was quoted that portion of his predecessor’s note of June 25, 1922, relative to most-favored-nation treatment.14 I took this precaution after the present incumbent, Ilias Bey Vrioni, had expressed to me the opinion that “no one” had a right to see the text of a treaty until it had been ratified by the legislative body.

The enclosed copy of the Albano-Italian Treaty of Commerce and Navigation,15 with accompanying protocol and supplementary declarations was given me privately by my Italian Colleague. The Italian aim at economic penetration is clearly shown, especially in Articles 6 (establishment of bonded warehouses), 9 (right of Italian companies to operate in Albania), 10 (monopolies), 13 (equal rights for imports, exports, transit or warehousing goods, transportation in national bottoms), 14 (rights of captains and boats or barges to navigate interior waters), 16 (use of interior means of communication, ports, etc.), 17 (coastal shipping), 18 (fishing).

The Yugoslav Government is opposed to the treaty on this account and may cause serious opposition to be raised against its ratification by the Constituent Assembly or subsequent legislative body. The British, it is said, object especially to the provision covering monopolies and have succeeded in focussing public attention on Article 10. The Italians, however, have countered by expressing a willingness to fix the interpretation of that article by an exchange of notes. My Italian colleague desired me to support him with regard to Article 10 on the ground that it was in consonance with the demands put forward by the American, Italian, and French Governments on March 2nd, 3rd and 4th, of last year for conformity by the [Page 318] Albanian Government to the policy of the open door. In reply I pointed out that the article, as now phrased, might be interpreted in the sense that no concession of any character whatsoever might be accorded to foreigners by the Albanian Government unless Italian capital participated therein; that, for example, telephone service, the country was too small to admit of more than one operating company. The American view would be met, I thought, if open and fair international competition were assured for all concessions, whether monopolistic or otherwise. Doubtless, certain of the Italian negotiators hoped that Article 10 might pass unchallenged which would have given Italy a veritable “strangle hold” on Albania. My Italian colleague did not, however, combat my criticisms with much vigor and mentioned the proposals, referred to above, to fix the interpretation of that article by an exchange of notes with the Albanian Government.

. . . . . . . . . . . . . .

Should the revolution which is now in progress result in a decisive victory for either side a longer period of calm might follow and consequently of [a?] more stable government which would be more favorable for negotiations suggested. The Italian treaty and those concluded with Turkey are still unratified and there would seem no prospect of their being acted on at the earliest before the coming winter.

I have [etc.]

U. Grant-Smith
[Enclosure]

The American Minister (Grant-Smith) to the Albanian Minister for Foreign Affairs (Vrioni)

No. 62

Excellency: I have the honor to transmit herewith, for the information of your Excellency’s Government, a copy, with translation into Albanian of a letter addressed to me by Mr. E. S. Sheffield, the representative of the Standard Oil Company of New York.16 After carrying on negotiations, on behalf of his company, with the Ministry of Public Works over a period of several months, he finally, under date of February 25, 1923, deposited with that Ministry signed proposals for a concession for the development of the petroleum resources of certain areas in Albania.

It is with some surprise that I learn that these proposals have been held at the Ministry of Public Works since that date without having been brought before the Council of Ministers for consideration [Page 319] with a view to their being submitted, in the regular course, to the legislative body for final action.

It can be readily understood, in consequence, that the representative of the Standard Oil Company of New York should have gained the impression of a “lack of any serious intention on the part of the Albanian Government as regards the business in question”. Such delay whether due to administrative neglect or to other causes, has operated to the serious detriment of the company above mentioned and would also be in contravention of the rights and treatment formally guaranteed to American citizens and companies by the Government of Albania.

In bringing the foregoing to the attention of your Excellency I have the honor to request that the necessary remedial steps may be taken without further delay and avail myself [etc.]

U. Grant-Smith
  1. Not printed.
  2. See telegram no. 10, Feb. 27, 1923, to the Minister in Albania and telegram no. 20, Mar. 2, from the Minister, Foreign Relations, 1923, vol. i, pp. 373 and 375.
  3. This quotation does not appear in the only note to the Minister for Foreign Affairs enclosed, which is printed infra.
  4. Not printed.
  5. Not printed.