File 2249/1915 Pt 4 ‘Oil: Mesopotamia & Persia. (General File) 1920–24’ [‎64r] (127/484)

economic resources in the occupied or mandated
pending an agreement—
regions would remain in statu quo
the ^ arid ^ tor y Power strictly adhere and conform to the principles
expressed and agreed to during the peace negotiations at Paris, and to the principles
embodied in mandate A prepared in London for adoption by the League of Nations
by the Commission on Mandatories.
(2.) That there be guaranteed to the nationals or subjects of all nations treatment
equal in law and m fact, to that accorded nationals or subjects of the Mandatory Power
wit iespect to taxation or other matters affecting residence, business profession,
concessions, freedom of transit for persons and goods, freedom of communication, trade,
navigation, commerce, industrial property, and other economic rights or commercial
activities.
. ('^•) Phat no exclusive economic concessions covering the whole of any mandated
region or ^sufficiently large to be virtually exclusive shall be granted, and that no
monopolistic concessions relating to any commodity or to any economic privilege
subsidiary and essential to the production, development, or exploitation of such
commodity shall be granted.
(4.) That reasonable provision shall be made for publicity of applications for
concessions and of governmental acts or regulations relating to the economic resources
of the mandated territories; and that in general regulations or legislation regarding
the granting of concessions relating to. exploring, or exploiting economic resources, or
regarding other privileges in connection with these, shall not have the effect of placing
American citizens or companies, or those of other nations or companies controlled by
American citizens or nationals of other countries, at a disadvantage compared with the
nationals or companies of the mandate nation, or companies controlled by nationals of
the mandate nation or others.
6. Ihe fact that certain concessions were granted in the mandated regions by the
Turkish Government is, of course, an important factor which must be given practical
consideration. The United States Government believes that it is entitled to participate
in any discussions relating to the status of such concessions, not only because of
existing vested rights of American citizens, but also because the equitable treatment of
such concessions is essential to the initiation and application of the general principles in
wffiich the United States Government is interested.
7. No direct mention has been made herein of the question of establishment of
monopolies directly or indirectly by or in behalf of the Mandatory Government. It is
believed, however, that the establishment of monopolies by or in behalf of the
Mandatory Government would not be consistent with the principles of trusteeship
inherent in the mandatory idea. His Majesty’s Government has stated its
conception of the necessity for the control of oil production in these territories
in time of national emergency. The Government of the United States does
not intend at present to suggest arrangements that shall extend to any consideration
not included in an enlightened interpretation of what constitutes its legitimate
commercial interests. The question of control in times of national emergencies of
supplies which may be deemed essential by Great Britain is a subject which the United
States Government deems a matter for separate discussion.
8. The Government of the United States realises the heavy financial obligations
which will arise in connection with the administration of the mandatory. It believes,
however, that any attempt toward reimbursement by the adoption of a policy of
monopolisation or of exclusive concessions and special favours to its own nationals,
besides being a repudiation of the principles already agreed to, would prove to be
unwise even from the point of view of expediency both on economic and political
grounds. It also believes that the interests of the world, as well as that of the two
respective countries, can best be served by a friendly co-operation or a friendly and
equal competition between the citizens of the two countries and citizens of other
nationalities.
9. The Government of the United States would be glad to receive an early
expression of the views of His Majesty’s Government, especially in order to reassure
public opinion ir\ the United States.
10. I have the honour, further, to acquaint your Lordship that this note is not
designed by way of reply to the Allied note from San Remo, which will be answered
separately.
I have, &c.
JOHN W. DAVIS.
B 2
252 P.O.P. 3 10 12 6 50 11 | 20 [4102]