The Waterbury Democrat., 1935-08-31
Ethiopia Giues OiL
 Grant To oAmericuns
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could cause complication of untold gravity in the present Italian. Ethiopian crisis inasmuch as Italy would find itself confronted in the territory it seeks with a prior claim, legally contracted, on the part of foreign capital.
 The contract, on Ethiopia's part. guarantees the concessionaires against losses by ''force majeure" by major force from another party, which in this case would be Fascist Italy.
 Signed at Dawn Friday
 It was signed at dawn yesterday, after an early morning conference at which Emperor Halle Selassie was understood to be present, by Francis William Rickett, British oil promoter, in behalf of the corpor- ation; and by Wolde Marian Ayaleu, director of mines. and Everett A. Colson, American finan- cial adviser to the government, in behalf of Ethiopia.
 It was reported that the African Exploration and Development Cor poration was affiliated with the Standard Oil Company of New Jersey.
 The development company was said to have headquarters in Lon- don, end it was reported that Brit ish capital had some interest. One Jump Ahead of Italy
 By the contract Emperor Halle Selassie I, flouting the apparent design of fascist Italy to seize the rich portions of his country, grants the company the oil concession in all Ethiopia eastward of a line from Aendakoma, on the Eritrean frontier, southward along the 10th meridian of longitude to 8 point on the Awash river between Awash and Choba, on the French railway between Djibouti. on the coast and Addis Ababa, thence southwestward to the northern end of Lake Rudolf on the frontier of the British Kenya colony.
 At the leilway line, the west bor- der of the concession is 80 miles eastward of Addis Ababa. the capi- tai. A little further south, at the nearest point on the southwestward line, near Algo. it is but 60 miles away.
 Eight Days Negotiating
 Eight days of negotiation pre- ceded the signing of the contract. Ricket, Colson and Ayaleu work ed day and night on it unknown while statesmen of Europe were ac "maneuvers."
 Territory covered by the con- tract has not been exploited. But it has been sounded for oil. Rich p. ols have been indicatde in the Awash and Jigjigga regions. An Englishman named Nesbit recently prospected the county in behalf of Italy. He was killed in an airplane crash on his way back to Eng land.
 (It was a coincidence that re- gently Italy's greatest expert on Ethiopia, an explorer, who had spent years in little known terri tory. was killed in an airplane crash in Egypt on his way to Eritrea to be expert adviser to the expeditionary force.)
 Oil seepages in the Jigjigga, Gerlogubi and Ogaden regions in- dicate that deposits might most be expected in the Awash valley.
 Survey Within Year
 The development company Is obligated to survey within a year, to start drilling within five years, and to continue until sufficient pe- troleum has been discovered to meet Ethiopian requirements in addition to 2,500,000 tons annual ly for export tax free.
 It is provided that the company shall commence pipe line as soon as port is available.
 In event of a state of .emer- gency the company would be obli~ gated to try to increase production for the government. It would be permitted to abandon it's rights up 90 days notice. The govern tmen promises to aid in expropria- tion of land.
 Emperor aHile Selassie was re- ported today to have asked Lloyds' underwriters to insure against war risks his personal possessions, valued at about $2,O00,000. in his palaces, as we'll as government property valued at about $3,300.- 900. The emperor's personal for tune, is estimated at $10,OO0,000 sterling-deposited in banks in Eu- rope, chiefly in Paris.
 Situation Made Worse
 Paris, Aug. 31-(UP)-An oil concession granted by Ethiopia to American interests will make the mediatory role of the League of Nations much more difficult in the Italian Ethiopian crisis, officials indicated today.
 Repercussions all over Europe to the concession brought a strong odor of oil into diplomatic quar- ters of the chief capitals.
 The French view that an already grave situation might be seriously complicated seemed to be general
 It was realized here that one of the aims of Italy in seeking a pro- tectorate over Ethiopia was to ob- tain oil needed for it's navy after tests showed rich oil deposits in northern Ethiopia
 Instead of oil helping the trou- bled waters, French leaders are convinced now that the situation has been made more grave Premier Pierre Laval and his five fellow delegates prepared their case for the league council Wednesday, determined Co involve EsraeNo fp, rsn nganTs vxf7flS ffnlw h,