File 2249/1915 Pt 4 ‘Oil: Mesopotamia & Persia. (General File) 1920–24’ [‎67r] (133/484)

It is assumed, accordingly that your statements with reference to mandate “ A,”
together with the statement that the draft mandates for Mesopotamia and Palestine
have been prepared with a view to secure equality of treatment for the commerce and
citizens of all States which are members of the League of Nations, do not indicate a
mipposition on your part that the United States can be excluded from the benefits of
ifoe principle of equality of treatment.
This Government is pleased to find that His Majesty's Government is in full
sympathy with the principles formulated in its communications of the 12th May
and of the 28th July. But it is unable to concur in the view, contained in
paragraph 15 of your note, that the terms of the mandates can properly be discussed
only in the Council of the League of Nations and by the signatories of the Covenant.
Such powers as the Allied and Associated nations may enjoy or wield in the determina
tion of the governmental status of t he mandated areas accrued to them as a direct result
of the war against the Central Powers. The United States as a participant in that
conflict and as a contributor to its successful issue cannot consider any of the Associated
Powers, the smallest not less than itself, debarred from the discussion of any of its
consequences, or from participation in the rights and privileges secured under the
mandates provided for in the Treaties of Peace.
This Government notes with interest your statement that the draft mandates for
Mesopotamia and for Palestine, which have been prepared, with a view to secure
equality of treatment and opportunity for the commerce, citizens and subjects of all
States which are members of the League of Nations, will, when approved by the
interested Allied Powers, be communicated to the Council of the League of Nations.
The United States is undoubtedly one of the Powers directly interested in the terms
of the mandates, and I therefore request that the draft mandate forms be communicated
to this Government for its consideration before their submission to the Council of the
League. It is believed that His Majesty’s Government will be the more ready to
acquiesce in this request, in view of your assurance that His Majesty’s Government is in
full sympathy with the various principles contained in the two previous notes of this
Government upon this subject.
The establishment of the mandate principle, a new principle in international
relations, and one in which the public opinion of the world is taking a special interest,
would seem to require the frankest discussion from all pertinent points of view.
It would seem essential that suitable publicity should be given to the drafts of mandates
which it is the intention to submit to the Council, in order that the fullest opportunity
may be afforded to consider their terms in relation to the obligations assumed by the
Mandatory Power and the respective interests of all Governments which are or deem
themselves concerned or affected.
The fact cannot be ignored that the reported resources of Mesopotamia have
interested public opinion of the United States, Great Britain and other countries as a
potential subject of economic strife. Because of that fact they become an outstanding
illustration of the kind of economic question with reference to which, the mandate
principle was especially designed, and, indeed, a peculiarly critical test of the good
faith of the nations which have given their adherence to the principle. This principle
was accepted in the hope of obviating in the future those international differences that
grow out of a desire for the exclusive control of the resources and markets of annexed
territories. To cite a single example: because of the shortage of petroleum, its
constantly increasing commercial importance, and the continuing necessity of replenishing
the world’s supply by drawing upon the latent resources of undeveloped regions, it is of
the highest importance to apply to the petroleum industry the most, enlightened
principles recognised by nations as appropriate for the peaceful ordering of their
economic relations.
This Government finds difficulty in reconciling the special arrangement referred
to in paragraphs 18 and 19 of your note, and set forth in the so-called San Bemo
Petroleum Agreement, with your statement that the petroleum resources of Mesopotamia,
and freedom of action in regard thereto, will be secured to the future Arab State, as
yet unorganised. Furthermore, it is difficult to harmonise that special arrangement
with your statement that concessionary claims relating to those resources still remain in
their pre-war position, and have yet to receive, with the establishment of the Arab
State, the equitable consideration promised by His Majesty s Government.
This Government has noted in this connection a public statement of His Majesty s
Minister in charge of petroleum affairs to the effect that the ban Itemo .Agreement was
based on the principle that the concessions granted by the former Turkish Government
must be honoured. It would be reluctant to assume that His Majesty s Government has