Evening star., 1949-05-08

gina, And vace versa In oeaFss ell
the countries local goieGnnsntA
ara political groups cant 10 csa-
~al The oil industry Oh - noa
only = source O; international nil
liary power . prominent Brazil
ian fndastTlallss told me Il -
also = source 81 local political
power wHh fat royalties tfosn
oil exports. TO, q tss ambitious
politlcos and wcaid.nf strong
men see a way 10 keep themselves
in power. OF 81 least TO maintain
armies With which 10 guarantee
their tenure
SationAlsSte and Communist
inspired agitation in Colombia has
become 80 intense and iaaS tANrs
and other restricts On pfpdue-
ton and exploration ~ sreai that
several oi the smaller foreign
companies are shutting down and
pulling out, The Tropical OH Co.
aFsi and largest to so into CO.
loFnhia nearly 20 years ago, has
made known its intention 80 set
out the moment it& present con-
oeSsion Is up IN 1891
Coneessions Se.xed
Bolivia confiscA,ed the Stand
ard Oh Cos concessions Ia the
Chaeo noon after the bis foreign
companies were appropriated IN
Mexico IN 1888 However, Bolivia
is the only country 10 which the
United States, through the Ex-
port Import Bank. has made o
loan for oil drilling and eSpiera-
ton, Some 80 500 900 vas grant
ed the La paE government during
the war. and an application for
another s2.So0. 900 Is nov pending.
But. 80 far. there has not been
much increase in the eountry's
output,
In effect. the new peronikta
constitution In Argentina calls for
appropriation OF the oil and other
such enterprises. Specifically. the
document provides that ''subaoil
products must belong TO the state F"
The Preuyian government has not
seriously interfered with the iarss
companies that have been oper-
ating along the north coast, in
the region OF TalAra. but II has
discouraged any other foreign
companies from coming In. Stand
ard Of New Jersey had spent con.
siderable money and effort ea-
pioring and locating new deposiis
In tho oriente. the region east OF
the Andes. along the Affiasofiian
watershed. But 20 many diffcul-
ties and restrictions have been put
In It's path that II has practically
abandoned all activities In that
region.
So far. Ecuador has not dis
turbed the activities Of the Anglo
Ecuadorian company on the Pa.
cifle coast, The government OF
President Gallo Plaza has even
granted q concession 70 Shell and
Standard In the eastern interior.
the first new oil concession any
Latin American nation has grant
ed TO any foreign private company
since the war. Although the
United States and British com
panies In Venezuela have been op-
Grating uninterruptedly for many
years, year after year ths ressFie-
tons have increased. and labor
contracts have grown more and
more sxacting,
Feel Insecure
Today the leading companies in
Venezuela are actually IN business
with the government, The COM
panies bear all expenses Of prodoe-
ton. pay al kinds Of taxes. iretnd-
ina stiff income taxes. provide
employees with every comfort, con-
venisnce and even luxury. all kinds
Of insurance, modern homes. and
then split with the government on
fifty-fifty basis the net profst
from all oil kold abroad.
Even 10. the companies do not
feel at all secure. Venezuela has
had two major revolutions since
the end OF the World War. one of
them q great social 90 veil aa q
political apheaval, The military
Dictatorship now IN power has
scrupuiously observed I'll tis prss-
eat oil agreements. but shat is 10
follow that regime nobody can
surnise. In rs exhaustive report.
the Woiyerton Committee took
due notice Of the fact that ths
Venezuelan government has grant
cd no new concessions for drilling
or exploration since 1s<s.
There IL no question that al
branches Of cur Government are
worried about ti,e difneuitlss con-
fronting tire oil industry. ard
especially the Increasing Yestxte-
tions being placed upon United
States oil operations and invest
ments I'm the majority Of the eoun-
tries Of Latin America. Mtantinas
the State Department has been
generally opposed 20 any Govern
ment agency lending rnossey 70
Latin American governments for
the development Of oil fields. ft has
insisted that United States private
companies not only have TIE Large
amounts Of risk capital necessary
ffsee TOALINsON. Pass CAD
| Daily Average Oil
Output in Western
Hemisphere Motions
asfssks
| United States -~-.. ks1tsAoo