The Waterbury Democrat., 1943-12-01


restraint of trade, against the pub
lie interest, and therefore shouldn't
be allowed.
On the other hand, there is the
European cartel idea that these
deals are okay, particularly II the
government benefits from them or
shares in them Thorough governmnt
subsidiary corporations. European
pre-war rubber and tin cartels are
examples. The U. s. government
has also shared In similar ventures
through world wheat, coffee, wool
and cotton sterilization agreements
Also, wartime monopolies are now
exercised by the government-own-
ed Rubber Reserve Company, De-
tense Supplies Corporation, Com
modify Credit Corporation and
similar international procurement
agencies. But they're all tempo
rary, and they're mere chicken feed
when compared to the much larger
postwar applications of this the
DRY to the control of international
aviation and international oil.
POSTWAR AVIATION
QUESTION
The international aviation thing
has been considerably in the lime
light. 1t hangs ON the decision,
apparently to be made In the State
Department, whether postwar in
ternational aviation expansion shall
b an economic for-al, with COM
peting American companies scramb-
ing for flying rights over various
routes, or whether one chosen in
strument' company-either private
ly financed, publicly financed or a
combination of the two-shall be
given exclusive franchise under
government control.
The international oil thing Is Just
now coming into the li1nelght. 1t Is
spotlighted by the recent disclos-
ures on the ArInys anol oil devel-
opment project in Canada. The
real center of this situation Is In
the still very hush-hush program
Of the Petroleum Reserves Corpo-
ration, another government corpo-
ration which has apparently been
given the job Of arranging for the
development Of foreign oil conces-
Sions, so that this oil can be made
available to the United States to
make up for diminishing American
oil reserves, heavily drawn on by
the war.
The stage now seems to be set
for PRO to go places and do things.
The first place 1t has gone is into
Saudi Arabia, sending a geological
diplomatic nilsson to see what's
cookin' on the desert oil stove. This
comes as a follc H-up on the recent
visit to the U. S. Of two Arabian
princes-coincidental, of course.
OIL MEN AND UNCLE SAM
Now in the old days, it was al
ways the custom for the big oil
companies to send their own mis-
sions to foreign countries to do
business on oil rights. The big oil
companies didn't want U. S. govern
ment interference in such business,
and they yelled for government
help only when some Of the foreign
governments got rambunctious and
seized the American properties, as
Mexico did in 1888.
That confiscation or expropria-
ton or whatever you want to call 1t
may have changed the picture for
the oil companies future point of
view, in that it may have shown the
advisabillty Of having the govern
ment sit in as partner on these
foregn oil deals. If the foreign
government then got funny and
started expropriating, it wouldn't
be bucking just an American corpo-
ration, but the American govern
ment. A battleship could be dis
patched and the Marines landed
under such circumstances, to re-
store order-and property. Oh,
there are lot Of lovely wars In
the making in such a set-up.
AS matter of fact, the oil con-
cesSions in Saudi Arabia are alrea-
dy held on long-term basis by an
American company the California
Arabian Standard Oil Company. a
joint subsidiary of the Texas COM
pany and Standard of California.
Just what part the governments
Petroleum Reserves Corporation Is
to have in this is not yet an
nounced, but PRO is definitely in
international big business and Is
taking the government along with
1t, will ynilly. What comes of all
tbs Is something to keep your eyes
on. And Is the socialism, or capt.