RUMANIA'S RICH OIL RESERVES

Auckland Star, Volume LXXI, Issue 156, 3 July 1940, Page 6

RUMANIA'S RICH OIL RESERVES

IN MELTING POT.

FUTURE AT STAKE. RUSSIAN VENTURE. MORE GERMAN INFLUENCE. VAST FOOD RESOURCES. After ten months of precarious neutrality Rumania has been thrown into the melting pot with her rich deposits of high-grade oil as the prize. Events have moved fast in the last week. The sensational coup of Russia in "eizing the agricultural provirce of Bessarabia, with its Black Sea outlets, and northern Bukovitia, important strategically, have been followed by far-reaching repercussions in Rumania itself.

The army has been mobilised to deal I with further eventualities, and from the cables it is apparent that these are fast shaping themselves. It is reported that the British and French guarantees of 'assistance in the event of aggression have been renounced by Rumania, + his being interpreted in London as a sop to Germany. In the meantime Germany has been applying increasing pressure ecouomically, and, through Hungary, politically. The goal here is the province of Transylvania, in area about half what is left of Rumania, and containing a large proportion of the oil-bearing country. Expansion Of Territory. The geographic and political status of Rumania changed considerably after the last Great War. Bessarabia was acquired in April, 1918, the Bukovina in November, Transylvania and the Banat and Crisana-Maramuresh in December, these additions to territory being recognised in the treaties of St. Germain, 1919, and Petit Trianon the following year. It was only in February, 1935, how- ' ever, that the present constitution of Rumania was adopted. According to this, Rumanian citizens, irrespective of racial origin and religion, are equal before the law. No Rumanian may advocate in speech or writing a change in the form of Government, a change in the distribution of the wealth of others, exemption from taxes, or class trouble. The clergy may not use their ritual authority for political propaganda. All political associations based on' religious pretexts are forbidden.

On the other hand, the State guarantees .to all religions denominations equal liberty and protection if their practice is not contrary to public order, good morals and public security. Rumanians, states the constitution, shall enjoy liberty of conscience, work, Press, assembly and association. Parliament Dissolved. The members of the Senate are nominated by the King, elected, or are life members, while the Chamber of Deputies, an elective body, is elected for six years. The Goga Government of 1937, which was in office only 45 days, dissolved the Parliament and the present Cabinet is governing without Parliament. Early last year it was announced that in future three social classes, the agriculturists, the free professions and the workers, would be represented, and eight representatives from each would compose a Principal Council, to exercise executive powers.

Before Russia's recent move the population of Rumania was 20,000,000. Latest statistics give the population of Bessarabia at 3,110,054, Bukovina 010,997, and Transylvania 3,414,492. Bucharest, the capital, has a population of 050,000.

Military service is compulsory and universal from the ages of 21 to 50, the normal terms of service in the active army being two years, 18 years in the regular army reserve and nine years in the militia. The peace-time strength of the army was 13,613 officers and 147,946 other ranks, but it was announced recently that over 2,000,000 had been mobilised. The Air Force is organised in two air divisions, with a personnel of 12,000 all ranks and 815 aeroplanes. In the Black Sea are four destroyers, one submarine, three ex-Austrian torpedo boats and four motor gunboats. The Danube force comprises seven monitors and smaller craft. Food And Minerals. The chief agricultural crops of Greater Rumania are wheat, rye, barley, oats and maize, the output of wheat alone approaching 4,000,000 metric tons. The principal minerals are salt, lignite, iron and copper ores, petroleum and natural gas. Petroleum wells, both Government and private, the latter being extensively financed by British and American capital, are worked at Prahova, Dambovitza, Bacau and Buzau. The total output of crude oil in 1936 was 5,103,497 metric tons, in 193" 7.150,000 tons, and in 1938 ! 6,600,000 tons. ] The salt mines are situated in the region of the lower Carpathians, from Bukovina to the west of Oltenic, an area of over 200 square miles. Salt mining has been a State monopoly since 18G3, and the annual production is in the vicinity of 300,000 tons. Before the war the United Kingdom was Rumania's greatest market, the principal exports being eggs, maize, wheat and petroleum. Importance of Danube. By virtue of its control of the lower reaches of the River Danube, vitally important European waterway, Rumania occupies a strong strategic position. By the Convention of the Danube of 1921, as modified in 1939, the European Commission of the Danube is composed of representatives of Great Britain, France, Italy and Rumania, and since March last year, also of Germany.

The Rumanian commercial Danubian navigation service is equipped with 21 passenger steamers, 65 tug boats, 24 motor boats, 489 barges, 60 oil tankers. 52 open barges, also drags and grain elevators. The Danubian waterway is essential for the transportation to Germany of oil and essential foodstuffs. Thus future mows by the Powers in this area will be fraught with deep eonsequences for the future of the war.