File 2249/1915 Pt 4 ‘Oil: Mesopotamia & Persia. (General File) 1920–24’ [‎47r] (93/484)

CONFIDENTIAL.
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. i y ,21 1
Diaft Despatch to the United States Ambassador.
"^HlyEThe honour to acknowledge the receipfoffouS ^Te^h December
- 4 .closmg a communication dated the 20 th November from the Secretary of State of
ib: SSlefof S C Utv e of 0 t the t aPP ! iCat r in terHtoHeS P la “ d ^ -ndat ^
A principles ot equality of treatment and opportunity, referring more esneriallv in
the petroleum resources found in the Near East. EOs Majesty’s 0 ^X 00 ^
adopted WHi^ Unlted St . ates Government appreciates the general policy
adopted by His Majesty s Government in territories under military occupation. 7
note of the 12 tb Mav 0r, > ina11 ^ made iu .y our Excellency’s
aoreement at Paris te y ; 0 te ^ a r d Assoclated Po "' ers had entered into an
n Pi th i * J he eiiem y territory, transferred as a result of the war with
Central Powers, should be held and administered in such a way as to assure equal
1 eat merit to the commerce and to the citizens of all nations. I did not feel it necessary
noteh b Ith l h ‘ S SU p Stl ° n ! n m y. note of the 9th August because, as stated in that
for Mesonot Government that the mandates
Mesopotamia and Palestine should secure equality of treatment and opportunity
for the commerce and nationals of all States who are members of the League of Nations
.mteofTLTiluxr preS f nt repetltl0n 0f the su gt; es tion contained in your Excellency’s
the facts 6 ' ~ t ' May ’ seerns neoessar y to point out that it is not entirely justified by
3. Under article 22 of the Covenant of the League of Nations three different
A. 1 ™ 0 ! “ anda t e were provided for. Mandates of the first class, commonly known as
a a- 1 Co “ andate ’ w . aa designed to meet the case of former Turkish territories.
1 tide is silent with regard to the commercial regime to be established in this
class. . in the second, or “ B ” class, the conditions under which the territory is to be
a ministered are to be such as to “ secure equal opportunities for the trade and
commerce of other members of the League." In the third, or “ C ” class, the territory
is to be ^administered “ under the laws of the mandatory as integral portions of its
territory, subject to certain safeguards in the interests of the indigenous population
these are the provisions to which the Allied and Associated Powers, inchidmo- the
United States, gave their assent. The result is that, as regards the “A” mandates
there is no obligation to grant equal commercial opportunities to all members of the
League, though, as stated above, it has always been intended that this should in fact
be done. As regards the “ B” mandates, all members of the League are to enjoy
equal opportunities for trade and commerce ; while as regards the “ C ” mandates, any
such obligation on the part of the mandatory is expressly excluded.
4. further, I must demur to the suggestion that it was ever agreed at Paris
that the rights in question should be granted to all nations. The provisions of the
Covenant refer exclusively to “ members of the League." I he suggestion now made
would cast upon the mandatory Powers the obligation of granting these commercial
privileges to ex-enemy States which have not yet been admitted to the League, and
no such suggestion can be admitted ; nor, under the terms of the convention, is a
mandatory bound to grant to any States which, although entitled to become members,
have not accepted the obligations and responsibilities attaching to membership, the
privileges conferred by the Covenant upon members of the League.
b. I observe that in Mr. Colby’s note it is stated that °the United States, as a
participant m the war and as a contributor to its successful issue, cannot consider itself
debarred from the discussion of any of its consequences. This might be read as
suggesting that the fact that the United States did not take part in the discussions of
the Turkish peace settlement was due to some action on the part of the other Allied
and Associated Powers. I am anxious that it should be generally understood that this
is not so. The absence of United States representatives from the discussions which
resulted in the Turkish peace settlement was due to the decision of the United States
Government itself, and you will remember that when the representatives of the Powers
concerned met in London at the beginning of last year to draw up the terms of peace
to be presented to Turkey, I had the pleasure of extending to your Excellency a special
invitation to represent the United States Government in their deliberations, but your
instructions did not permit you to accept this invitation. 1 need hardly say that His
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