How the State Department Can Aid Foreign Oil Development

THE State Department can be of assistance to Americans in the petroleum business directly and indirectly. During the past few months, at the Arms Conference, it had a large hand in dealing with affairs indirectly affecting the oil problem. The conference has somewhat relieved the emphasis on naval strategy in relation to oil supply by limiting the number of naval vessels or the fleets of the Great Powers and in maintaining the "open door" in the Far East in respect of the development of the natural resources of that region by defining that policy in a nine-power treaty. The largest competitors of the. United States in the petroleum field are parties to that treaty. The Department of State also has stood steadfastly for the principle of equal opportunity in the Dutch East Indies, Mesopotamia, and Persia. The Department of State has been of indirect assistance in connection with oil problems by insisting on the recognition of treaty rights and other guar-antees, such as most-favored-nation clauses, and mandate provisions. I am not speaking as a representative of the Depart-ment of State, as L now have no connection with that institution, but my experience of several years as a member of the department and my practice since my resignation have given me opportunity to see the department from both the inside and the outside, and to measure its limitations as well as its resources.