851.6363/157: Telegram
The Chargé in France (Marriner) to the Secretary of State
[Received September 26—12:35 p.m.]
428. The Embassy has learned that the Commercial Councilor of the British Embassy made official verbal representations to the French Foreign Office on September 22 to express the concern of his Government and the British oil interests operating in France over the persistent reports of the possibility of establishing a Government petroleum import monopoly here. He pointed out that since British oil interests had made large investments in France on 20–year contracts guaranteed by existing legislation the establishment of a monopoly would necessarily call for strong formal protests on the part of his Government and indemnification to cover investments made.
The best information seems to be that the likelihood of the Parliamentary Commission reporting in favor of the establishment of a monopoly has increased. The present efforts for bettering relations with Soviet Russia, the Herriot visit, the mission of Pierre Cot, Minister of Air, and the projected visit of Patenotre, Undersecretary of National Economy, are all giving rise to comment that the Soviet oil interests might be able to furnish oil to a monopoly in France far more cheaply than any of the existing companies. As it is to the present political interest of France in view of the German situation to gain Russian friendship it is possible that this project will have more backing from the Government this autumn than when it was first discussed last spring.
I have made no direct representations having contented myself with mentioning the matter informally to Paganon, Minister of Public Works, during a conversation after a lunch and to La Bonne, head of the American Section of the Foreign Office equally informally on another occasion.
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