The Waterbury Democrat., 1935-12-04
Claims He
 Has OiL Agreement
Continued from Page 1)

i Italy, night clash with the United States governments policy of dis couraging more than normal exports of essential products to Italy. Told Not to Worry
 The existence of the 'gentlemens' agreement is said to explain Musso- lini's optimistic declaration at a recent session of the Fascist Chemi- cal Corporation when he told scien- lists not to worry, if they could not find oil substitutes because the sit- uation was well. in hand.
 It was understood that oil under the agreement would be obtained chiefly from Rumanian wells con- trolled by Standard Oil and would be shipped to Italy by way of Hun- gary and Austria, which have de- clined to cooperate fully in league sanctions.
 It is understood to be stipulated further that other shipments might be made from the other side of the Suez Canal direct to Eritrea and Italian Somaliland, Italy's two East African colonies, to avoid passage through the Suez Canal, thus assur- ing the armies of fuel.
 As to the amount of oil to be sup- piled Italy under the agreement, Italy is doing all it can to stimulate its own sources of supply. Officials of the "Agip" Corporation - the government controlled company, for exploitation of oil in Italy - are confident that within one year they can obtain 100000 tons of crude oil from Albanian wells.
 Standard Oil Denies It
 New York, December 4 .-s(UP) - Walter c. Teagle, president of the Standard oil Company, denied em- phatically today that his company's Italian subsidiary had entered into an agreement to supply Italy with oil in order to defeat 8 possible League of Nations embargo.
 Tn a formal statement to the United Press on being informed of reports of the agreement he said:
 '"The only information regarding the reported agreement between the Italian government and the Societa Americana Del Petrolio for guaran- teeing Italy her supplies of oil in re- turn for a term monopoly is that telephoned us by the newspapers.
 Not Even Considered
 "r can unequivocally deny that any such arrangement has been considered. So far as I know 1t has not even been proposed to our Ital- ian company. Officers of that com pany know that such contract would not only be impossible of ful- fillment but also would under no circumstances be accepted by us.
 Tt sounds like preposterous piec of propaganda"
 The sensational Pickett oil con- cession in Ethiopia, which was can- celled at the demand of the state department, was obtained in behalf of the African Exploration and De- velopment Company, new subsidiary of the Standard Vacuum Oil Com- pany. The Standard Vacuum Com pany is owned jointly by Standard of New Jersey and the Socony Vacuum Oil Company.
 Geneva Call It Bluff
 Geneva, December 4 - (UP) - International circles described a re- ported agreement of Standard Oil of New Jersey subsidiary to supply Italy with oil as a "collossal bluff" today.
 First, Rumania has been one of the most fervent advocates of pen- alties against Italy. It has offered among the first = to apply an oil embargo against Italy. Further, it backed a proposal to ration ex- ports from countries participating in league penalties so that no non- participating country, even if a league member, could defeat an ern- bargo by he-shipping to Italy.
 Hence it appeared that any effort to ship Rumanian oil to Italy via Hungary and Austria must fail.
 It was daubted also, that any company would establish a credit of $81 ,O00, ,O0O to Italy, as reported un- der the agreement, when Italian credit is almost paralysed through out the world.
 Italy Refutes It
 Rome, December - (UP) - The government in a conmunique today characterized as completely desti- ute of foundation" reports that Italy had made an agreement with the Standard oil Company of New Jersey for a supply of oil in event of an embargo against Italy. Roy Hawkins, director of the Societa Italo- o-Americano Del Petrolio at Genoa, refused to comment. He said statment would be issued at his office in the United States.
 SPEED UP MAIL
 Washington, Dec. 4-(UP)-Post-