The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-12-18
OIL POLICY OF
Dutch UNFAIR,
| SAYS EXPERT
Woodhouse Declares Holland
Is Discriminating In
Concessions.

BY HENRY wOODHOUSE,
AsthSr q The ssr1ssl: e, The Wsria's
Textbooks on Aviation.
The Netherlands government. by
adopting the British closed door
policy. is excluding Americans from
the oil fields of Hollands Pacific
colonies. just as the British ex-
cluded Americans from oil opera
tons elsewhere, although both the
British and Dutch conduct enor-
NOUS oil operations In the United
States unrestricted.
1he United states Holland oil
controversy is closely related to
the United States British oil dis
pute on account Of the open door
principle being involved through
Hollands exclusion of Americans
from the East Indies oil fields. as
well as on account Of the close re-
lation and association between the
Royal Dutch Petroleum Company
and the Shell Transport and Trad
ing Company and other British
Dutch Oil combines and the joint
efforts Of both nations to control
the worlds oil resources to the ex-
clusion Of the United States.
Americans Excluded.
The Royal Dutch-Shell group are
large operators In the United
States, where they have been per-
mitted to operate unrestricted. en-
Toying the same privileges as
American nationals: and for this
and other equally fair reasons the
United States State Department
protested to Holland when Ameri-
can nationals were Disseminated
against In connection with the
operation Of oil fields in the Dutch
East Indies.
AS the Netherlands possessions
on the Pacific are extensive and
have considerable oil-bearing terri
tory the open door is Of extreme
importance to the United States
from an economic standpoint. But
the question Of equity il also OF
utmost importance, since the Royal
Dutch interests are permitted to
operate in the United States unre-
stricted, enjoying the same priv
leges as American nationals.
A great deal of confusing gen.
eralities have been circulated re-
garding the United States ROLAND
oil controversy. The facts are that
for over five years Americans APP
piled for permission to operate oil
properties in Dutch colonies and sub
sequently Standard OIL representa-
owes called on Dutch officials offer
ing to meet Dutch government re-
Quirements for participation in the
operation Of the Sumatra oil fields.
Dutch East Indies, and they were
told that foreigners were not per-
mitted to participate.
The Jjambi Oil Bill
Nevertheless the British Batavia
Oil Company, and the Bataafschs
Company, both part of the Royal
Dutch Shell combine. were awarded
the concession for forty years, un-
der the "Jjambi oil BILL" passed by
the second chamber Of the Dutch
Parliament, on April z. and the first
chamber on July 1, 1921.
The Jjambi law makes the Dutch
Indian government and the British
Batavia Oil Company partners, the
10000 900 guilders lover $40 1000. 000)
to be divided equally. The directors
will be Dutch. which is not o diff
cult provision to comply with. since
the directors are subject to the in.
structions Of the stockholders. who
on the Batavia Oil Company side
are British and are controlled by the
British government.
Tho Jjambi oil bill was put into
effect in spite Of the recommenda-
tons Of the commission appointed
BY the Dutch government to con-
slider the oil situation that the gov
eminent. instead Of private con-
Germs. should exploit oil
This commission also stated Hol-
lands only hope to escape becom-
ing party to q world war as a result
of efforts Of world powers to obtain
control Of the worlds oil resources
was to have the Dutch government
operate the great oil fields In the
Dutch East Indies. Such q policy
would have closed the door to the
Americans. who for ten years have
been bidding for an opportunity to
operate oil properties there.
U. 8. Protest Ignored.
But Il would also have excluded
the Anglo Dutch interests. generally
known as the Royal Dutch-steel
combine.
Had this taken place. the differ
ences between the United States and
Holland would be confined to the
DOlnt IndL f1OIIanu wd0 Out
Americans contrary to the principles
Of reciprocity. As 1t was, tho
Djambi oil bill Disseminated against
Americans.
It Is possible, ~ course, that the
Netherlands government officials
were not aware Of the British iden-
tity Of the Batavia OIL Company,
and relied on the Representations
made that its directors were, or
would be, Dutchmen; but the ,Ameri-
can State Departments diplomatic
correspondence with Holland shows
many technical equivocations.
For instance, the State Depart
msnt was prompt in filing protests,
which were apparently ignored at
the time they were made. Never
theless, the Dutch officials later
pleaded justification for excluding
Americans, on the ground that the
decisions had been reached before
the United States protests were
received.
The Dutch Discriminate.