Evening star., 1940-01-23
Rumaniia Given
Allied Warninq
On Oil for Reich
Complications Seen
If Firms Are Forced
To Aid Germany
By the Associated Press,

6y IQG ASSOCldt6Q fTCSS.
BUCHAREST, Jan. 23.-Britain
and France today warned the Rn-
manian government that any at
tempt to compel British and French
oil companies operating in Ru-
mania to furnish oil for Germany
might lead to grave complica-
tions."
The warning followed Rumanian
decree creating National Petrole-
um Commission with authority to
control production, refining and
export of all Rumanian oil 'in con-
formity with the interests Of the
state"
The decree gave the commission
sweeping powers, including the right
to take over companies not submit
ting to its orders.
In some foreign circles the Ru-
manian decree was reported due to
German pressure to obtain all the
oil possible from Rumania.
For several months German
trade commission has been negoti-
ating with Rumania for increased
exports, including oil, wheat and
other supplies.
No Forced Production.
The allied ENJOYS were under
stood to have said that while Brit
ain and France did not dispute
Rumania's right to regulate the oil
industry, they would not tolerate
forced production by British and
French owned companies for Ger
man war use.
There was a feeling in many
quarters that the decree was in
tended to implement the Govern
ment's recent invitation to foreign
oil companies to participate in a
big national defense loan.
The foreign companies, includ-
ing large United States interests,
Joined in an offer to take 5OO000,0OO
lei (about $3,5O0,0OO in the loan
bonds, each firm sharing in pro-
portion to its part of the total VOL
ume of business.
Finance Minister Militia Con-
stantinescu was reported to have
refused the offer, saying the for
eign companies should subscribe
full 1.O0O,000,000 lei (about ST.
600 ,O0O).
The companies countered with an
offer to take 750,000,0O0 lei (about
$4,75o,0O0).
Troops Along Rail Line.
The derloying Of German troops
along . Polish railway leading into
Rumania's oil and wheat fields
ostensibly to curb rebellious train
crews-is viewed by some diplomats
here as a potential means of Nazi
pressure on Rumania.
The soldiers were stationed, by
agreement between Germany and
Soviet Russia, Poland's partitioners,
because the 2O0-mile section con-
cerned runs through the Russian
occupied area Of Poland.
authorized sources in Berlin
denied that Germany had troops,
police, railway men or engineers
at the Rumanian frontier ard
said Russia alone was admins
tering that area)
The railway reaches from Ger
man Silesia through Lwow and
Jaroslaw to Cernauti, in the North
ern Rumanian province of Buk-
owina.
Oficial sources said Russia con-
sented to the policing after Ger
many complained that shipments
of grain and oil to supply her war
machine had been delayed and
sometimes lost because of rebellious
and inefficient crews.
Rumania Reassured.
Linked with the German Russian
arrangement, these quarters added
was a provision for German tech
nical supervision of oil fields in
Russian occupied Poland, near the
Rumanian border, and withdrawal
Of some Red Army troops.
It was understood Rumania had
been assured the arrangement
would not mean big concentra-
tion of German troops near her
border. Some diplomats, neverthe-
less, insisted Germany might be
able to use the troops for leverage
against Rumania, even if they were
there only to police the railway.
Arrival of German military police
and train crews last week at Lwow
gave rise to rumors a new terri
torial division of Poland was i'm
pending, with Germany to occupy
a section up to the Rumanian from
tier.
Rum an ian officials contended
these reports were groundless and
that the arrival of the Germans ua G