Evening star., 1925-04-11
COOLIDGE UNMOVED
BY OIL PACT TERMS
Mildly Rebukes Sinclair In
terestS for Story of Un-
fairness by Japanese.
BY DAVID LAWRENCE.

President Coolidge has mildly re-
buked the Sinclair oil interests for
endeavoring to create the impression
that the United States was hood
winked by Japan in the recent agree
ment made by Toxic with the Soviet
government.
For several days there have been
published stories interpreting the
Japanese Russian agreement for con-
cessions in Sakhalin as a violation OF
the principle of the open door. This
correspondent last week disclosed
the viewpoint of the American Gov
ernment TO be that the open door
policy had not been violated. The
White House now has felt con-
strained to go even further and
place the responsibility for the err
roneous Interpretation on certain in
terests" which were disappointed by
the Russian Japanese agreement.
Back TO Fall Trip.
Back of all this is situation
which runs to the days when Albert
y. Fall made a trip to Russia ana
when the former Secretary of the In
terror still was influential with the
Harding administration. The Soviet
government wanted recognition. Ihey
made a contract with the Sinclair
interests whereby the latter were 10
receive oil concessions, but they were
to become null and void If the Amer
lean Government did not recognize
the Soviet regime. The Sinclair in
terests consented to that provision.
but Secretary Hughes looked askance
at it. Whether the Sinclair interests
believed that Albert Fall could per-
suade President Harding to extend
recognition to the Soviets or whether
II was hoped the Soviets would ignore
the provision and let the concession
stand is, of course, something which
only the Sinclair people know. So
far as the State Department is con-
cerned, 1t never considered the oil
concessions as a reason for recogni-
tion.
Little Interest In Sinclair.
Since the Teapot Dome scandal was
revealed, there has been even less in
terest in forwarding the projects of
the Sinclair oil people In relation to
the Russian concessions.
Entirely apart, however, from the
questions involved in the concession
obtained by the Sinclair interests, the
Department of State has come to the
conclusion that disinterested inter-
probation of the open door" agree
ment between Japan and the United
States do not warrant any idea that
the pact has been violated.
Examining the text of the agree
ment. the phrase general superiority
is used. This means that no nation shall
claim or maintain any general supe-
riorIty in any region in the Far East
which is open to commercial develop
ment. Officials of the Department of
State point out that the Japanese
have just obtained a relatively small
area for oil drilling and that other
areas are available to American in
terests if the Russian government of
today or the futcre wishes to dispose
of them.
The Japanese having recognized
Soviet Russia naturally beneht by
that step and their oil companies
have merely made a better bargain
with Soviet Russia than did the Sim
clair companies.
The American Government does not
believe the Japanese have anything
like a monopoly and the whole Incl
dent is dismASed as not having any
bearing on the relations between
japan and the United States for
there will be no protest made. Nor
Is 1T likely that the American Gov
ernment will feel at liberty to sup
port the Sinclair concession which
has been declared invalid in the Mos
cow courts. To support 1t would be
to enter into the merits of the con-
troversy over recognition. When
diplomatic relations are resumed,
there may be a claim entered on the
board grounds of equity, in which
event, the Department of State will
be in better position to insist on
fair treatment for all American in
terests, the Sinclair companies in
cluded.