The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-05-06
DUTCH OIL REPLY
CAN'T SATISFYU.S.
Washington Threat Hast
ems The Hague to Deny EX-
clusiOn in Sumatra.
CONCESSIONS SHUT OFF
Only Netherlands Subjects
CONCESSIONS SHUT OFF
Only Netherlands Subjects
Can Manage Exploitation
in Djambi Fields.
mo CAUSE TO COMPLAIN
Holland Hopes to Keep Amer
ica's Good Will, as Japanese
Aggression Is Feared.
Special Despatch to THE NEW York HERALD.
New York Herald Bureau.
Washington, ID. c., May 8.

New York Herald Bureau.
Washington, ID. c., May 0.
The Netherlands Government has
taken cognizance of the American
threat of retaliation concerning the
Dutch Governments policy of barring
Americans from participation in the
exploitation of the Djambi oil fields of
Sumatra The statement explains the
situation in Sumatra and denies a
policy of exclusion. 1t is known that
the Dutch Government is greatly con-
cerned over the attitude Of the United
States, whose friendship 1t greatly re-
lies on in protecting Its East Indian
possessions against Japanese agrees
sion.
No official comment was made here
to-day on the Dutch statement. but 1t
Is believed that It is regarded as un
satisfactory. The statement in part
follows:
Tho primary object, therefore. OF the
Netherlands in opening the so-callod
Djambi oil fields on the island of SUI
matra Is to make these actively pro-
ductive as soon as possible. In the mat
ter of marketing the finished product
the most liberal policy toward the con-
sumner is to be followed. Holland has
consistently maintained an open door
policy both in the mother country and
In her colonies. With regard to actual
mining operations the Netherlands Gov
eminent has to maintain a considerable
amount of control This is imperative
on account OF the nature OF the country.
where conditions are vastly different
than in other oil producing countries.
for instance, the United States.
mo more concessions will be given
for the exploitation OF oil fields. but
the Netherland East Indian Government
will either develop the oil fields or else
do SO by contract with persons or pr-
vate companies having previously been
authorized to do so. These companies
must be incorporated either in the
Netherlands or In the Netherlands East
Indies. No limitation Is put on the
ownership. the holding or the control of
the stock of such companies. The man
aging and directing boards are to be
Netherlands subjects or subjects OF the
Netherlands East Indies. Every for
eigner can claim residcnceship soon
after arrival in the East Indies.
with reference to the obtaining of a
contract Of exploitation 1t is thus seen
that the regulations do not prejudice
IN favor of companies OF Dutch own
ership as against companies which de-
rive their capital from the United
States.
with regard TO the present Djambi
contract II may be useful to point out
that the decision to work the Djarbi oil
helds through company in which the
Dutch East Indian Government and the
Bataafshe Company work together does
not in any way mean the granting OF a
monopoly in all the East Indian oil
helds to either the Bataafshe or to the
purely Dutch corporation which controls
this latter company. the Royal Dutch.
In defending the blu concerning the
D5ambi fields In the States General the
Dutch Minister of the Colonies has
strongly spoken against such a monopoly
and has pointed out that within a short