The Washington herald., 1922-06-18
OIL MAIN FACTOR
In RUSSIAN FIGHT
FOR PLACE IN sun
Soviet Prefers Deal With
Standard Oil to One With
British Interests.
sINvESTIA" CYNICAL
Shipments From Baku Fields
Being Made in IncreasA
ing Amounts.

LONDON. June l7-Russia con-
nues to regard oil as the principal
actor in Its nght to regain its place
IN the sun.
Despite negotiations at Genoa be-
ween the Shell oil interests OF
ereat Britain and the Soviet dele
gates. the field Is still wide open for
tandard OIL or any other American
bill combine that cares TO enter the
ight, the United Press has been in
Horned.
II standard Oil approaches the
eoviet government directly, 1t Is
Itaked by high Soviet officials here,
kn arrangement can be made giving
Ehe company all possible facilities
(or developing the important Baku
bil felds-with Soviet control. how
Pvr. and with Soviet participation
b the output, and, through taxa
bon. in the proits.
we would rather deal with
standard Oil than with the Shell
company" a Soviet trade delegate
laid. despite the fact that Stand
krd OIL is approaching US Indirect
y and. we claim, debating the
French policy toward US. 1t was
bot France that was heard at the
Eenoa conference, 1t was Poincare
Ind Standard Oil.
"Of course. we do not like IL
Che Shell company has negotiated
With Russia directly. Standard OH
pas never made a real overture.
bur reason for preferring to deal
With Standard is that it is nonpo-
btical. 1t is a purely capitalisuc
lffair, and we prefer that to one
hat might be termed political. The
British government holds a direct
interest in Shell.
since Disraelfs time England
has been trying to separate the
Caucasus from Russia. That is
what we fear in dealing with the
Ishell company. Standard Oil Is out
kor itself. for money. 1t can get
ktl facilities in Russia, but we shall
hot permit II or any other interest
10 get a grip on the country.
Soviet Cynical.
Investia. the official Soviet news
baper at Moscow, cynically says OF
the Genoa conference:
Russian petroleum played lead
|nE part. bringing about scenes
shich were caused chiefly through
kllowinE Rockefeller's Intervention
the second act OF the petroleum
|sragi-comedy will be continued at
|rhe Hague. other questions like
khe recognition of private property
we're only secondary matters COM
Lnared with petroleum. Russia was
I'm amused on-looker IN this scram-
bic between the petroleum i'm
|perialists.
4 "Azerbaijan-Baku- 10
|drrly in our hands, and the oil
E.ru.ts will soon apply to us, not we
Iso them"
The newspaper refers to the
Soviet claim that Standard Oil. in
with the Creusot steel
lind other powerful French inter
.sts, is debating the French policy
towards Russia.
In conformity to its view that
|ol dominates the situation, the
fSoviet government is attempting
I'm every way to get the Baku fields
going again. A report Of the
|Azerbaijan petroleum administra-
|tion shows that the output of oil
Nor the six months ending April
|sO increased 80 per cent over the
preceding six months, despite poor
production facilities.
The administration proposes TO
market its present stocks, totallinE,
In is stated. 2.703.250 tons. Actual
|rales have begun 1t Is stated that
1.-The petroleum industry generally
has improved. despite a slump to-
ward the end Of the last six months
period.
shipments of OIL.
Shipments Of oil from the Baku
|aelds are being made in increasins
amounts. Those for April exceeded
the March shipments by 234.715
tons. Soviet reports declare that
customers are satisfied with de-
'liveries. and that as regards Russia
Itself the financial situation was
considerably improved during April
by the realization Of petroleum
stocks Both home and foreign
sales are increasing, II Is declared.
During March and April. there
was a slump in production. The
April falling of being due really
to difficulties experienced during
March. By the middle OF May. how
ever. production had reached $3.50
tons a day. On May IT the OUTPUT
exceeded 1880 tons
Sales OF oil to foreign buyers,
II Is stated. have resulted in the
receipt of valuable food supplies.
The Russian newspapers are urg-
Ing the necessity Of increasing Pc
troleum production. Pravada. in an
editorial, says:
The utmost attention must BE-
given TO Azerbaijan petroleum,
which is a mighty weapon in the
struggle for Soviet Russia's recon-
struction. Better railway facilities
must be provided. and volga trans
port improved"
The Russian supreme transport
council. after discussing a recent
telegram from Tchitcherin. the
foreign minister. resolved to form
a special commission to consider
transport facilities. particularly to
italy from the Black Sea ports
Soviet oficials say foreign capt.
talists will have no difficulty In OBJ
tanning oil concessions peacefully.
II they will consent to Soviet par
'hcipation in output and profts.