Detroit evening times. (Detroit, Mich) 1921-1958, 1944-08-17


OUR position (Which has been
" inwardly guided by Ralph
Davies, the eX-California Stand
ard Oil man, who is assistant 10
Oil Director IckeS) is that only
minimum quotas should be fixed,
and oil allowed 10 flow easier.
and hence easier prices.
II the British have their way,
the difference between this new
setup and the old Royal Dutch
Shell days may not be material.
This all depends on who is APP
pointed to the international oil
commission and what it does.
Even the date for the appoint
ment of the commission is left
ito be agreed upon after each
government shall have notified
the other of readiness" Our
people are about ready now.
Four government men are
supposed to have been chosen TO
represent us. but their names
remain TO be approved by Mr..
Roosevelt. They say the new
regime will start in a few weeks.
What they mean is they hope so.
I ORD BEAVERBROOK, the
IL chief British negotiator, has
a reputation of being the hard
est trader in British politics.
However, our people think they
were able TO extract from him
a remuneration of the endeared
British Empire preference ar
rangement, whereby segments
of the empire would get pre-
ferred buying arrangements at
British wells.
This empire preference agree
ment caused Churchill to amend
even the Atlantic Charter by
making those freedoms subject
with due respect to existing
arrangements" (the words he
wrote i'm The earlier technical
agreement had preserved this
preference treatment. but the
wording of this abrogates that
arrangement.
We surrendered in the nego-
tiations on the point Of allowing
the agreement TO be Cancelled
on three months notice, in def
erence TO the British desire TO
protect herself against unfavor-
able trends in foreign exchange.
Also, therefore, there are
grounds for uncertainty as TO
how long 1t will last.
7 AFTER, the commission is 70
IL try for an international con-
ference 10 get all nations IN. IL
will not disturb existing oil
holdings throughout the world.
largely controlled by British and
Dutch.
But on our side. il solidifies
our hold on the fabulous Saudi
Arabian fields where Standard
of California and the Texas Co.
claim TO have proved reserves
of 10000, 100000 barrels - an
amount equal 10 the reserves OF
the whole United States, in an
area one-ffth as large as our
country.
The British went into this
new thing with us independ-
entity for two reasons. They
have been much disturbed by
the aggressiveness Of our oil
companies in going out after
new fields. The agreement tends
TO preserve their holdings in
status quo, and presumably,
they will bring in the Dutch
with them, as their money is
behind most Dutch holdings.
A second reason is that the
Russian developments in the
Middle East are apt to come
more and more in conflict with
the prime British interests
there. Russia also is to be in
vited in when this bilateral
agreement is extended multi
laterally "a la HulD in future
months.
4 MEXICAN companies are
"A supposed TO be preparing
10 move out in all world direc-
tons for greater exploration
activities after the war, in
view of the oil needs not only
of the navy and shipping, but
of our air transportation.
All we have had in the Pa
cific area are three small fields,
not enough 10 begin 10 care for
our future international peace
or commercial obligations. Also,
il may be good policy for us 10
develop foreign oil as much as
we can and conserve our own
limited supply.
But the main job of this
promised international commits
sion will be 10 estimate produc-
ton and need throughout the
world. thus TO provide a full
distribution 10 all.
The agreement. thus seeking
popularity approved objective.
follows the line of most post
war agreements we have made
so far-the food conference and
world agriculture, the relief
and rehabilitation conference
agreements. the world aviation
approach, and particularly the
political agreements such as the
Atlantic Charter, Tehran, Mos
cow etc.
a set Of broad laudatory OBJ
icctives has been laid down.
They constitute nothing more
than aims. Whether they will
be followed in fact. 10 what