The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-03-09
BRITISH CLASH
With U. S. OIL
MEN IS CERTAIN
Serious Trouble in Persia
Averted, but Friction
Continues.
This Is another of series of articles
on How Long Will Our Oil LaSt?"
BY RODNEY BUTCHER
NEA Service Writer


NEA Service Writer
Copyright. 1928. NEA Service, Inc)
WASHINGTON. March 9.-The
oil reserves of Persia, Mesopotamia
and Turkey have been estimated at
nearly six billion barrels, so it was
inevitable that British and Amer
lean petroleum interest should clash
in a struggle for control in the
Near East.
On one stage of that struggle
there was even serious discussion
of the possibility of war between
Britain and the United States. Com
promise between the Standard and
Anglo Persian oil companies finally
dispel1ed the war clouds, but not
before the world had observed the
seriousness of the constant battle
for its oil resources.
League Favors Britain
Undoubtedly with an eye to oil,
Great Britain obtained League of
Nations mandates in Palestine and
MeSopotamia after the war and
france JOOK OVSE. OyI1d.
Britain had sent more troops into
this territory than military neces-
stiles warranted and apparently in
an effort to obtain French aid there
had promised her barren area in
northeast Mesopotamia which
proved to include the rich petroleum
fields around Mosul.
Chaos for time governed the
region as a result Of Anglo Franco
Turkish warfare and intrigue, but in
1921 France and Turkey signed a
treaty giving the territory to Tur-
key and its oil to France. This left
Britain out in the cold, and very
angry.
Boundaries in Doubt
In the spring of 1921 the British
had made their man Feisal king
of the new state of Iraq. Iraq'S
boundaries were not defined. pre-
sumably in the hope that it might
be stretched out to include Mosul.
Shortly prior to the Lausanne
conference of 1922, which was to re-
wise the Turkish peace treaty of
Sevres, an Iraq army, led by Anglo
Indian officers, took over the oil
region ito defend and liberate their
countrymen from the cruel oppreS-
sion of the Turks"
The United States had not been
asleep all this time. 1t woke up,
in fact, about the time of the
Franco British San Reno petroleum
agreement of 1920, which would
have divided up the oil between
Britain and France to the virtual
exclusion of the United States.
Concessions Avert Split
Serious trouble probably was
averted by a deal through which
the Anglo-Persian company let
Standard Oil in Mesopotamia and
Standard let Anglo-PerSian in on
her concessions in the North Per-
sian fields.
Everyone began to talk peace and
brotherly love again, and the League
of Nations soon ratified the man
dates America had protested.
In the next year, the Persian
parliament def1ed the big powers
and broke up the British American
deal by refusing to ratify the Stand
ard concession because of the Brit
iSh participation,
The American State Department
protested, but obtained no satisfac-
ton.
u. s. Demands Rights
Thus in April, 1923, the second
Lausanne conference found Amer
lea on hand to protect her oil in
terests in Mesopotamia, demanding
an economic open door, in all
mandates.
Under the Lausanne treaty finally
negotiated, the League of Nations
finally awarded Mosul to Iraq
which made a cash settlement with
Turkey for the oil rights.
Last year an agreement was COM
pleted for a company to exploit the
Mesopotamian fields, by which
shares and production are to be
split four ways.
The Royal Dutch Shell, the Anglo
Persian, a French group and an
American group dominated by
Standard Oil each have a Is per
cent interest, with the British domi-
mating.
First Well Find"
The news late in october that
the first well in Mosul had been
brought in, proving to be 100000
barrel-a-day gusher impossible at
first to control. was regarded here
as a signal for the battle for Messo-
potamian oil to start all over again,
through all sorts of skulldoggery.
Meanwhile, the rich fields of
North Persia lie idle. The only out
let for North Persia Oil is through
Russia and, furthermore, Persia
doesn't want British Oil men to
dominate her whole area any more
than Russia wants them too near
the Caucasus.
Next: The Latin American oil
situation.