Evening star., 1948-01-18
Davies Agrees 10 Give
Arabian Oil Evidence;
krug Faces Subpoena
by the Asseeioisd Press

Committee last night dropped plans
to subpoena Ralph K. Davies, for
mer deputy petroleum administra-
tor, for testimony about Arabian
oil deals when 1t learned Mr.. Davies
will appear voluntarily next Friday.
Chairman Brewster was telling
reporters about sending the sub
poena to San Francisco, Calf, for
Mr.. Davies appearance here next
Tuesday when Harold Ickes, former
Secretary of Interior and Mr.. Da-
vies' wartime boss, telephoned Sena-
tor Brewster that MIR. Davies will
appear Friday.
Apparently Mr.. Ickes was able to
convince Mr.. Davies that he should
testify" Senator Brewster said. II
telepnoned Mr.. Davies earlier today
and he refused to say that he would
come"
Krug Subp0ena Planned.
But Senator Brewster said an
other subpoena, calling on Secretary
Of the Interior Krug to supply Ger
tain missing papers" concerning the
wartime Arabian oil offers, would
be issued this week end.
The Senator said these papers
deal with . reported offer In 1943
by w. 8. 8. Rogers. president Of
the Texas Co., to supply Arabian
oil at cost plus q nominal profit"
If the United States Government
would extend lend-lease aid to
Saudi Arabia.
Senator Brewster contends that
the Navy later bought some $780,
100000 Of Arabian oil products at
excessive prices"
I'VE can't find what happened to
this 1943 offer or even ind the
papers concerning It," Senator
Brewster said. 1.-THE Government
supplied 80 million dollars worth Of
Lend-Lease aid to Saudi-Arabia but
We got nothing for 1t"
Papers Reported Missing.
He said that MIR. Krug, as Score
tary Of Interior, took over the war
time records of both Mr. Ickes and
Mr.. Davies, who were chief and dep
uty Of the Petroleum Administration
for War. But Senator Brewster
said "Krug's Office has been unable
to find the papers"
Senator Brewster said the Senate
committee wants to question Mr..
Davies, q former vice president of
the Standard Oil Co. of California,
about any part he may have had In
the Arabian oil transactions and
wartime oil prices.
The chairman said Mr.. Ickes has
agreed to testify Friday about these
matters and the hearing should
clear up all angles Of the Arabian
oil deals"
The Senate investigating COM
mittee expires at the end Of this
month when its final reports are
supposed to be made to the Senate
by June 81.
Senator BreYster previously has
staged . number of public hearings
dealing with various phases Of the
Arabian oil deal.
Davies Wires Made Public.
/, Senator Brewster made public an
exchange of kilograms between Mr..
Davies, who now is president Of the
American Independent Oil Co., and
the committee.
Mr. Davies said In one message
that he pcDGld not aid the inquiry
into prices paid by the Navy for
Arabian oil because while a war
time official he disqualified himself
from connection with the trans
actions because Of his former busi-
ness associations.
by arrangement with Secretary
Yckes all matters related to interest
of Standard of California were
handled by him personally and any
connection that PAW may have had
with prices for products sold the
Government by Standard or Stand
ard and Texas jointly was with the
Secretary (Mr. Ickes) rather than
myself. You may wish to verify
this with MIR. Ickes in Washington"
Previous testimony disclosed that
the rich Arabian oil concession is
held by the Arabian American Oil
Co. This formerly was owned by
the Texas Co. and Standard Oil OF
California.
Senator Brewster said the Navy
agreed to pay $1.05 barrel for
this Arabian oil under q contract
IN June, 1945, "just before Japan
surrendered although the oil previ-
ously had been offered for much
lower prices"