Diario las Américas., 1958-02-12

THE YADAROLA L

Much has been said about the YadarOla Plan, suggested
by the Argentine Ambassador in Washington, DIR. Mauri-
cO fadarOla, concerning a method of exploitation of the
OIL resources OF his country. The proposal is that, instead
OF the state granting concessions for exploration and
exploitation of oil its byprOducts, in the usual
sense of the word Concession, a contract be entered
into by the State and the oil company based around the
principle of the j~uridical mOdus of lease or Contract for
services. The Nation would contract with a foreign
company Tor the exploitation of oil and would pay the
company for It's services with the product extracted from
the operation. The company would furnish the capital.
equipment, and technical services. The Nation, while
paying In oil. would reserve sufficient amounts of the pro,
duet to meet domestic requirements, and once domestic
demand was satisfied, would export the surplus either by
selling 1T to the company whose services are under con.
Uact or 10 any other purchaser In the international
market.
Under this plan, then, there would be no transfer of
national property, no rights to the SubSOil given for a
relatively extended period of time, nor could it be argued
that the oil companies are settling within the national te.
[rltOfy as might be claimed by nationaliStic elements in
tne countries with oil resources who are extremely Jealous
that their governments not mortgage to use an ex-
preston employed by them the national patrimOny.
Behind the YadarOla Plan may also be seen other
symptoms indicative of a desire that the governments of
oil producing countries obtain a greater benefit from the
exploitation of their oil resources. Thus, against the $3.50
percent system initiated in Venezuela some years ago and
which has been working out with notable success, there.
have appeared the contracts between Japan and Saudi
Arabia, and between Italy and Iran. In the latter, Iran
would receive IS per cent of the profits, and Italy 25; in
the former, Japan would allow Saudi Arabia 81 per cent
against her own 36 per cent. 1t must be borne in mind
that, besides these advantages, there is also the market
factor to be considered, and that Saudi Arabia wants to
obtain a stable market for her surplus in Japan.
There are, then, tendencies toward obtaining for the
governments greater benefits from the oil exploiting COM
panieS, in all parts of the world. Saudi Arabia. it would
seem, wants to share in the profits obtained not only
through the exploitation and sale of oil produced in her
territory but also in the sale of that product abroad and
even in the transportation of oil. 1t is not, therefore,
ventureSOme to say that we may well be on the eve of a
stage when oil producing countries, Spurred on by poll
teal natiOnaliStic elements, will bring the problem before
the oil companies, seeking a larger share of the profits.
Involved in this desire are not only the necessity of obtain
Ing a greater income for the nation but, even more, of
safeguarding management and ownership, through ade-
quate controls, of the SubsOil of each producing nation.
In a subject so important and so intimately related to
the sovereignty of the States, extreme prudence and tact
must be exercised by the governments concerned; and a
feeling OF understanding and willingness to serve the
peoples OF these oil producing countries, is, likewise, a
factor that the oil companies must have.
The YadarOla Plan Is, perhaps, the most original idea
presented, to date, where the interests of the producing
nation and the necessity to exploit a basic strategic pro-
duct are reconciled with the justifiable commercial position
of the oil companies. 1t should be recognized that, while
the signing of a contract for the exploitation of oil between
a State and a company is an act which falls under the cate.
CORY of private State action, as against public, anything
relating to oil has, per Sc, an international celebration or
flavor. Oil is a product that, although possessed by a par
ticular country, the act of making it disable is a matter of
interest to all nations of the free world. What is imDOr-
tant is to safeguard the legitimate interests of the prOduc-
ing nation, and to carry out the exploitation of oil in such
a way as to offer a fair return to the companies that risk
for services, which may be applied to this operation,
would revOlutiOnize the system of concessions heretofore
employed and would allow countries such as Argentina to
join, with the required guarantees and through an Argen-
tine system, the group of nations who contribute their
oil toward the progress and ~welEbeing of the peoples of
the free world.
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