Omaha daily bee., 1920-08-14
FOREIGN OIL
FIRMS May
BE BARRED
0usting Of Interests Of Other
Countries Discriminating
Against U. S. Will Be Con-
Sidered at Next Session.

COLBY ASKS ENGLAND.
TO LIFT RESTRICTIONS
AngIo-French Agreement Gov
ers Exploitation of European
And Asiatic Fields, Freezing
Out American companies.
BY ARTHUR SEARS HENNING.
Chicago Tribune Omaha Bee Leased Wire.
ashing,on. D. G., Aug. 13.-1he
race for control of the fast diminish
'ng world supply of fuel oil, which
has been suggested as a possible
cause of future wars, has brought to
the fore this question:
Siiall the United States continue
10 permit oil development in this
country and its possessions SO long
as Great 2rita;n France and other
nations exclude Americans from sim
liar privilege in their territories?
A proposal that the United States
retr;iate by excluding from the field
Of American oil development the
nationals of countries which discrim-
mat. against Americans in this re-
spcct was agi'ated at the last ses-
sion of congress and is destined to
receive further attention at the next
session in view Of recent events.
Such a retaliatory provision was
a,cluded in the mineral deposit lea'-
ing law. but II applies only to the
public domain.
England Reticent.
K Secretary OF State Colby fort
night ago formerly asked the British
government whether the recently
concluded AnGio-French oil agree,
ment pertaining to European and
Asiatic fields would operate to ex-
clude American exploitation. HIS
inquiry followed conferences with
British Ambassador Geddes, who in
sisted tha. Great Britain readily
would con sent to American oil de.
vcfopment in all British controlled
fields. but so far the British gov
ernment has not replied.
The official text of the Anglo.
French agreement, negotiated at
San Reno. reached Washington to-
day. but it is difficult to determine
from the provisions whether the ex'
clusion Of Americans from the Brit
ish and French fields is contenl-
plated.
THE agreement states that It is
based on the princ,rles of cordial CO.
operation and reciprocity in those
countries where the oil interests OF
the two nations can be usetuliy
united. 1t covers Gil develoNlent III
Roumania. Asia-M Minor, territories
OF the old Russian empire" referring
nresumablv to The Baku district
chiefly Galicia. French colonies and
british crown colonies.
How Agreement Works.
The agreement provides that in
Mesopotamia Great Britain shall
grant to the French Is per cent OF
the oil developed by the British gov
ernment or 25 per cent share IN
British companies producing petro-
Icum. 1t is provided that any such
companies must be under perma-
nent British control" and that the
native government or native inter.
: ests shall be permitted not to exceed
a 20 per cent interest.
In North Africa and other French,
colonies. protectorates and zones OF
influence, France agrees to give
facilities to ary Franco-British
group or groups of good standing
for the acquisition OF oil
concessions" 1t is noted that the
French law provides such groups
shall contain at least 67 per cent
; French interests" Reciprocal ad-
vantages are granted to the french
in British crown colonies. =.
/, Nothing in his agreement, 1t
concludes. shall apply to conces.
sions which may be the subject OF
negotiations initiated by British OF
French interests"
About the League.
OF this agreement the Manchester
Guardian recently said:
"Critics Of Great Britain-and not
those of America only-will con-
tinue to ask why the league of IA
tions covenant should be treated as
If it were of no account; why at
San Reno or elsewhere we should
make private bargain over oil with
France. And especially in relation
to so important matter as TINS.
they will underline the mandatory
section of the league, which guar.
antees to all nations equality OF
economic opportunity with the man
datory of the league.
The maintenance of the open door
for American development Of oil IL
foreign countries is becoming more
and more important. for although
the United States now produces
more than IS per cent of the world $
fuel oil the American supply will
be exhausted in 20 years, according
to the experts. while the fields for
which Great Britain aid France are
reaching out are reputed to be good
for Is years of constant production.
In a report to congress at the last
session President Wilson described
the French restrictions on oil de-
yelopment by aliens and the exces-
siye restrictions imposed by the
Mexican government of alien oil
companies, preponderantly. Ameri-
can, against which the adfninistra-
ticn protested.
-