MANCEUVRE.
Now, a fortnight after this official communication, the Americans learnt that a sort of conspiracy was brewing to shut them out from all the sources of oil in the five con tinents. On 17th May, 1920, President Wilson transmitted to the Senate the report of the Secretary of State, requested by Senator Gore on path March. Mr. Frank L. Polk, Acting Secretary of State, wrote :—" The policy of the British Empire is reported to be to bring about the exclusion of aliens from the control of the petroleum supplies of the Empire, and to endeavour to secure some measure of control over oil properties in foreign countries. This policy appears to be developing along the following lines, which are directly or indirectly restrictive on citizens of the United States :— " r. By debarring foreigners and foreign nationals from owning or operating oil-producing properties in the British Isles, colonies, and protectorates.
" 2. By direct participation in ownership and control of petroleum properties.
" 3. By arrangements to prevent British oil companies from selling their properties to foreign-owned or controlled companies.
" 4. By Orders in Council that prohibit the transfer of shares in British oil companies to other than British sub jects or nationals." These measures have had the results detailed below.
British monopolies have already been established in the United Kingdom, Persia, India, and many other countries. In addition, the Netherlands Government seems to be on the point of granting the Royal Dutch Shell Company, now controlled by the British Government, the exclusive right of working all the oil lands in the Dutch East Indies, including Sumatra.
" It is understood that the British Government has a controlling interest in the Anglo-Persian Oil Company, and that it has also assisted in the development of the Papuan oil fieldsby bearing one-half of the expense and contributing experts. . . .
" According to recent reports, prospecting for petroleum is lawful in the United Kingdom only by the Board of Trade or the Minister of Munitions, or persons authorised by them. Similar regulations apply to working a petroleum property. The only drilling now going on in the United Kingdom for petroleum is being done by S. Pearson and Son, Ltd., as petroleum development managers to the Government.
" It is said to be unlawful for a British citizen, without the consent of the Board of Trade, to transfer to an alien or to a foreign-controlled company any interest in a company controlling an oil field in the United Kingdom." In Trinidad, where there are rich deposits of oil, no one can acquire oil-bearing land without the authorisation in writing of the Governor, subject to the approval of the Secretary of State for the Colonies. " It appears that the Secretary of State for the Colonies has been following the policy which would require that any acquisition of oil rights by a British company would provide that not more than 25 per cent. of its capital or voting power is to be held by aliens, and also that the chairman and managing director, and a majority of the other directors, shall at all times be British subjects, together with such other provisions as might be deemed necessary to insure the company remaining under British control."
" Citizens of the United States are generally excluded from petroleum development in Persia, where the Anglo Persian Oil Company has an exclusive right, granted 28th May, 1901, for a term of sixty years. This concession, extending over the entire country with the exception of five Provinces, and covering about 500,000 square miles, has been greatly strengthened by the agreement between the British and Persian Governments, signed on 9th August, 1919, by which the Persian civil, military, and financial administrations were placed under British supervision and direction." Having shown what an enormous share the British lion Las appropriated, the Report sets forth how nearly all other countries, even the smallest, bar the door to foreign enterprise. Only in Bolivia, Colombia, Costa Rica, and the Dominican Republic do there appear to be no legislative restrictions, discriminating between nationals and aliens. The case is different in Guatemala, Ecuador, and, above all, Mexico.
The Report proceeds to quote from Article 27 of the Mexican Constitution of 1917: " Only Mexicans by birth or naturalisation and Mexican companies have the right to acquire ownership in lands, waters, and their appurtenances, or to obtain concessions to develop mines, waters, or mineral fuels in the Republic of Mexico. The nation may grant the same right to foreigners, provided they agree before the Department of Foreign Affairs to be considered Mexicans in respect to such property, and accordingly not to invoke the protection of their Governments in respect to the same, under penalty, in case of breach, of forfeiture to the nation of property so acquired. Within a zone of roo kilometres (62.14 miles) from the frontiers and of 5o kilometres (31o7 miles) from the sea coast no foreigner shall under any condi tions acquire direct ownership of lands and waters." It adds later : " There appears to have been as yet no judicial interpretation of Article 27. . . . The Department of State is not advised that the Government of Mexico has imposed express restrictions upon citizens of the United States in regard to the acquisition and development of petroleum-bearing lands in Mexico which are not imposed upon the nationals of other foreign countries. It should be noted that the holdings of American interests in Mexico are so extensive that general restrictions applicable to foreigners fall most heavily on American interests." From all this information one fact stands out clearly. Sir Edward Mackay Edgar in his Times article had not bluffed. The official report proved that the United States were in a fair way to find themselves excluded from nearly all the oil-bearing regions of the world.