STERLING AREA OIL PURCHASES

Press, Volume LXXXVI, Issue 26031, 7 February 1950, Page 5

STERLING AREA OIL PURCHASES

Britain Rejects American Companies’ Demands ENDEAVOUR TO PRESERVE ACCESS TO MARKETS (N.Z. Press Association—Copyright) (Rec. 9.30 p.m.) . NEW YORK, February 5. The British Government has rejected proposals by American oil companies that they should retain a share of markets in the sterling area, according to the “New York Herald Tribune.” Oil sources learned to-day that Britain’s reply had been presented to the United States State Department. The American companies had demanded that the British restrictions scheduled to begin this month, on sterling area purchases of dollar oil, should be modified. [Britain proposes to ensure that any oil surplus from sterling area production is absorbed before dollars are spent on American oil.] The “New York Herald Tribune” said: “According to an authoritative source, Britain’s answer confirms the opinion that unless Washington acts promptly, the international oil trade will come largely under British domination.” There was only one semblance of a concession to American interests, the newspaper continued. Britain had given a guarantee that, as long as the Marshall Plan continued, she would not impose restrictions on dollar oil imports beyond those to become effective on February 15. The newspaper added that this was interpreted to mean that, until 1952, American companies could count on Selling about 9,000,000 tons of oil products a year in United Kingdom and other sterling area markets.