The Washington herald., 1921-06-12
Flatly Rejects the Hague
View that u. S. Pro
test Was Late.
SAYS u. S. INSISTS
ON EQUAL RIGHTS
Declares Legislation Does
Not Support Barring
United States.

UnlLeQ states.
The United States government
last night made II plain that it will
Dutch government that American
interests applied too late for per-
mission to engage in the exploita-
tion of the Djambi oil fields in CEN
trail Sumatra
y The note of the American govern
ment to Holland on May II, which
was made public last night by the
State department, instructed the
United States legation at The
Hague ito state that the United
States government finds it impossi-
BILE to regard the applications Of
American companies or its own ex-
pressions of interest in the matter
as having been communicated too
late to the government of the
Netherlands"
Follows Formal Protest.
The American note is another
step in the long line of correspon-
dence, dating back more than a
year ago. between the United States
and the Netherlands over the Ques-
ton of the right of American inter-
ests to participate IN the exploita-
tion of the Djambi East Indian oil
fields
The present note is a development
of a formal protest by the United
States against proposed legislation
pending in the Dutch parliament.
The proposed legislation under
question provides that a new COM
pany, the Netherlands Indies Min
eral Oil company, shall be created
and to 1t be turned over the opera
tion of the Djambi fielCs. British
capital is understood to be largely
interested.
Cites Previous Notes
The legation was instructed TO
express the American governments
regrets that the Dutch government
should regard the desire expresseo
by the American government, and
which had been expressed on re-
peated occasions. that American
citizens should be allowed to share
in the development of the oil in
dustry in the Dutch East Indies,
as Dutch citizens were permitted to
enjoy similar concessions in the
United States, as having been pre-
sented too late to receive considera-
ton by the Dutch government"
said the state department
The legation on September T..
1920, had informed the foreign min
lister that the United States govern
ment believed that the proposed
legislation regarding the Djambi
oil fields, il 1t should become a law.
would almost certainly be regarded
as an exclusive measure and as
being at variance with the principle
of equality of economic opportunity
so far as 1t concerned the Dutch
East Indies. Shortly after this
communication from the legation,
on September 8, 1920, a responsible
American company asked that it
might participate in the concession
to which reference has been made
Reserved for Dutch.
Certain statements in a docu-
ment prepared by the United States
department of state under date of
May IA, 1920. caused the legation
of the Netherlands at Washington
to communicate to the department
OF state on June 30, 1920, September
81. 1920. and February 2, 1921.
The legation of the Netherlands
at Washington, in a note Of June
80. 1920, had stated that the gov
ernment of the Dutch East Indies
would itself exploit its petroleum
resources, or would do so under
contract with private companies or
persons who had already obtained
authorization by law to enter into
such contracts.
According to the understanding
Of the United States government,
however. the proposed legislation,
to which reference has been made.
provides that a new company. to
be known as the Netherlands Indies
Mineral Oil company. shall be c.e-
ated and to 1t shall be turned over
the operation of the concession for
the Djambi oil lands.
Protest Went Before.
The legation was instructed to
remind the foreign minister. II the
government of the Netherlands felt
the introduction of the bill to con-
stitute a final decision, that the
legislation in 9aestion was only in
troduced into parliament on No
vember %, 1920. and that several
weeks prior to that date the
United States government had al
ready made its representations
with reference to the matter and a
reliable American corporation had
applied to the Dutch government
for a share in the development of
the oil lands.
Accordingly. the legation was
instructed to state that the United
states government finds IL impos-
sible to regard the applications of
American companies or its own ex-
pressions of interest in the matter
as having been communicated too
late to the government OF the
Netherlands
1T was also pointed out that TIE
United States government well
comes the statement in the foreign
minister's note of May 10. 1921, to
the effect that no distinction is
made between the capital of the
Netherlands and capital of foreign
countries in so far as concerns
companies wishing to take part in
the development of the oil lands of
the East Indian possessions of the
Netherlands. and that the govern
ment of the Netherlands would re-
gard with satisfaction the CO.
operation of American capital IN
the development of the mineral oil