The World-Struggle for OilL'Espagnol de la Tramerye, Pierre Paul Ernest
History
The World-Struggle for Oil
L'Espagnol de la Tramerye, Pierre Paul Ernest
Petroleum; Petroleum industry and trade; War -- Economic aspects
The ownership of oil deposits belongs to the Government in Bolivia,
Costa Rica, Slovakia, South Africa, Uganda, Venezuela, Great Britain,
and partly so in the Argentine, Australia, British Guiana, Ecuador,
India, Trinidad, Canada and Colombia. The Dominican Republic, Mexico,
Rumania and Russia are considering the possibility of following the
same course. But the United States have pledged themselves not to
recognize the new Mexican Government unless it renounces this measure.
In France the Government has regalian rights over the riches of the
subsoil; it grants them at its discretion.
In face of this situation, Senator Gore of Oklahoma, on March 10, 1920,
demanded of the Federal Government a report upon the measures taken by
foreign Governments to exclude Americans from oil-fields. Two months
later, on May 17th, President Wilson transmitted to the Senate the
report of the Secretary of State.
"The policy of the British Empire," wrote the Acting Secretary of
State, Frank L. Polk, "is reported to be to bring about the exclusion
of foreigners from the control of the petroleum supplies of the Empire,
and to endeavour to secure some measure of control over oil properties
in other countries. This policy appears to be developing along the
following lines, which are directly or indirectly restrictive on
citizens of the United States:--
"1. By debarring foreigners and foreign nationals from owning or
operating oil-producing properties in the British Isles, colonies and
protectorates.
"2. By direct participation in ownership and control of petroleum
properties.
"3. By arrangements to prevent British oil companies from selling their
properties to foreign-owned or controlled companies.
"4. By Orders in Council that prohibit the transfer of shares in
British oil companies to other than British subjects or nationals."
These measures have led to the control of the _Shell_, by agreement
with the _Royal Dutch_, which holds 60 per cent. of its shares. "It
is understood that the British Government has a controlling interest
in the _Anglo-Persian Oil Company_, and that it has also assisted in
the development of the Papuan oil-fields by bearing one-half of the
expense and contributing experts...." All prospecting for oil in the
United Kingdom must be authorized by the Board of Trade. In fact, the
only borings carried out in the country are by _S. Pearson and Son,
Ltd._, acting as petroleum development managers to the Government. In
Trinidad no one may acquire oil-bearing land without the authorization
in writing of the Governor, subject to the approval of the Secretary
of State for the colonies. Now the latter requires of every British
company that not more than 25 per cent. of its capital is to be held by
aliens and that the majority of the directors shall be British.
Public-domain text, read in full here on John Shaqi.
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