Ashburton Guardian. Magna est Veritas et Prævalebit. TUESDAY, APRIL 12, 1921. CONTROVERSY OVER OIL.

Ashburton Guardian, Volume XLI, Issue 9488, 12 April 1921, Page 4

Ashburton Guardian. Magna est Veritas et Prævalebit. TUESDAY, APRIL 12, 1921. CONTROVERSY OVER OIL.

t One of the, . most perplexing problems confronting the leading nations to-day^ is that of sectn? •m£ adequate and continued supplies of the mineral oil which is m ever-increasing demand for industrial and transport purposes and, not. least as an indispensable navaJluel. It has been :said that the- efficient mechanism •of ; the British Empire depends ja'tysblutely-v upon oil m this ne\v: age of transport — the . age of motor-driven vehicles and machines, oil-driven ships, and aviation. . . At the present time the TJnited States Government is at issue with the Allies over the control "of oil measures m Mesopotamia. ' Wide publicity has been given m America to assertions that ■■! Great Britain is intent on establishing a monopoly over the, world's future oil resources and an exchange of Notes has taken place between America and Britain m regard to the Mesopotamian mandate. Heated speeches , have been made m Congress and a political agitation has been commenced against Britain. One of the , Notes despatched by ' America alleges that Britain and France m their action regarding the division of Mesopotamian oil supplies, have "violated the

spirit of tlie mandate principle." The information at hand goes to show that this statement is incorrect. The draft of the British mandate over Mesopotamia provides that there shall he no discrimination against foreignStates m the oil enterprises. Apparently American dissatisfaction rests on the fact that before the war British and French operators had secured extensive oil concessions m Mesopotamia. These concessions are still recognised by -tlie Allies,, and m normal course will remain valid under the operation of- the mandate, but the circumstances are very far from /representing a combination by the French and British Governments to control oil supplies m Mesopotamia. The immediate problem m Mesopotamia! is not to, tap oil measures, but to set up a stable . Government, which will be able to maintain order. There is no dcnibt that some of the difficulties m which America finds itself with regard to mandate territories have arisen because of America's re-/ fusal to assume an equal responsibility with the Allies. But the Americans cannot deny that their position with regard to oil supplies is one of unchallenged preeminence, while the position of Britain has been termed precarious. Sir John Cadmanj principal officer of the British Petroleum Executive, has compressed the statistics into a few sentences "by saying: "The continent of North America produces to-day about 85 per cent:- of the world's output of, crude oil. The United States at present produces m her own territory nearly 70 per cent, of the world's oil output, , while if the quantity produced by TJnited States companies m Mexico is added, their total control m North America is at least 80 per cent, of the world's, .oil -supply. The British Empire produces only about 2| per cent, of the world's supply, or, if Persia may be considered to be under British influence, about 4^ per cent, of the whole.'.' According to Sir John Cadman, over 50 per cent, of the potential petroleum production of; the United States has been lost owing to indiscriminate drilling and other forms of waste, and Mr. David White describes American extravagance m the use of oil as "unbridled." It appears, therefore, that America has no . cause to become apprehensive and possibly the agitation m the United States against Britain, m regard' to Mesopotamian .supplies hlas been ' 'manufactured" by the great oil inter ests m America from selfish motives.