MR. O'DONNELL DEMANDS THE OPEN DOOR.
The Americans, however, are not the kind of people to let themselves be " encircled " without retaliating.
On the very day when the Polk Report was submitted to the Senate, Senator Phelan introduced " a Bill authorising the incorporation of the United States Oil Corporation," for the exploitation of oil in foreign countries. It was to be constituted on the model of the United States Shipping Board ; while enjoying complete financial and commercial autonomy, and acting like a private company, it would work solely under the control and on behalf of the Government. Its capital would be exclusively American ; the President would appoint its nine directors ; and the Federal Govern ment would have a prior claim to purchase the whole or part of its products. To be precise, the State would not itself provide the capital, because the laws of certain countries forbid the granting of concessions to a foreign State. But it would have behind it—like its British rival— the whole power of its Government, with all the means of pressure, economic and military, which the United States can bring to bear.
It must be recognised, however, that neither Congress nor the President has followed the lead of the Californian senator. For the time being, the official attitude of the American Government is as follows : given the general scarcity of fuel of every kind from which all nations are suffering, it is in the interests of the world as a whole that all available resources should be exploited to the maximum ; what matters, then, inasmuch as oil in particular is con cerned, is that all Governments should remove any restric tions which hamper free prospecting and exploitation of their resources by any company, even a foreign company, which is in a position to turn them to account and so to increase the potential industrial production.
This was the thesis which the President of the American Petroleum Institute, Mr. Thomas A. O'Donnell, with equal
courtesy and wit, developed before the International Chamber of Commerce on 29th June, 1920 : " Nobody has a higher appreciation than I of the English man abroad or at home. He is a good sportsman, always willing to take a chance in exploring for the world's treasure, a factor everywhere in development. I am rather surprised that some of my good English friends do not fully agree with me in advocating that a free opportunity should be given to all people to explore for this useful product, and that all Government restrictions be removed, and that Governments, and particularly democratic Governments, should not join in business enterprises, creating privileges by combination or otherwise with their own citizens, or citizens or subjects of other countries. Such participation is not in the interests of the future peace of the world, but must add the ill-will and friction of commercial competition to the always delicate problems of international diplomacy in dealing with the natural problems of Government. . . ." How oil is about to become a cause of international conflicts could not be better described.
Mr. O'Donnell concluded : " So far as the American petroleum industry is concerned, we are not asking for, nor do we want, any special privileges at home or abroad. We do ask, however, that in the interest of an increased pro duction, serious consideration be given to the fact that a great part of the energy and talent engaged in the pro duction of petroleum up to this time has come from America, that the world's requirements are increasing, and that as great an opportunity as is consistent with public policies should be extended to Americans and others to participate in the general development." Alas, it must be stated that this admirably liberal atti tude, though it met with the support of the Italians, found no echo in the British and French delegations of the Inter national Chamber of Commerce.