AUSTRALIAN OIL AGREEMENT.

Press, Volume LVI, Issue 16841, 22 May 1920, Page 9

AUSTRALIAN OIL AGREEMENT.

BILL PASSES SENATE. (By Cable —Press Association —Copyright.) MELBOURNE, May 21. The Senate passed the Oil Agreement Bill. (from ottk own correspondent.) SYDNEY, May 12. The agreement which has been made between the Commonwealth Govern-' ment and the Anglo-Persian Oil Com-; pany, for the development of the oil industry in Australia and her island possessions, is subject to ratification by the Commonwealth Parliament; and the Commonwealth Parliament is making a great fuss over the Bill. The Labour men, particularly, profess to see tno , mark of the cloven hoof all over the proposal. Labour's suspicions are not surprising. This country is completely in tho grip of the American Oil Trust, and, being greatly dependent upon motor traction for the negotiation of its wide distances, it Is being very thoroughly and systematically bled. Therefore the proposal that Australia shall ally; herself officially with one of the big oil companies, even though the latter is not an American concern, has alarmed the Labour representatives. They are asking for much more information than Mr Hughes seems prepared or able to give; and Mr Hughes, who hates to have to explain his well thought-out plans to anyone, let alone his bitter political enemies, is proving very irascible and snappy under cross-examina-tion. « The proposal ha 9 a very great deal to commend it. It is absolutely essential that the country secure some independent supply of oil, so that it may get away from tho clutches of the rapacious American concern and obtain reasonably cheap, traction. It hopes to secure oil within its own borders, or at any rate in the islands, but there is no guarantee of th it. State enterprise has never been very successful in such matters, and now is the time to recognise it. So the agreement provides that the Government and I*3 company shall together form a limited liability company, in which the Commonwealth Bhall nave thq controlling number of shares, but the technical and commercial management are to bo_ entirely in the hands of the Anglo-Persian concern. A large sum is to be spent forthwith in seeking oil in Australian territory, and if it is found, the new corporation is to enjoy a monopoly in refining and distributing it. Meanwhile, the new company will erect refineries in Australia, the .raw product is to be supplied by the AngloPprsian concern, and the new company will have a monopoly of the refining and distribution within Australia. It is hoped in this way to ensure Australia a certain supply of cheap motor fuel. 'It is argued that Australia is further guarded by the fact that the British Government has a controlling voice in the affairs of the Anglo-Persian. It is estimated that the refineries will take two years to build, and then, if oil is not found locally, 200.000 tons of crude oil will be brought here each year for relnement—which will go a considerable way towards meeting Australia's requirements. It will not go all tho way, but will do a lot towards keeping prices in check. Parliament will probably waste a lot of timo over tEe Bill, but it may be evrieeted to pass the measuro in the end.