EAST INDIES OIL

Dominion, Volume 34, Issue 80, 28 December 1940, Page 10

EAST INDIES OIL

New Tokio Demands Expected DUTCH WILL RESIST Question Of Exports To Dominions (By Telegraph. —Prose Asrsn. —Copyright.) (Received December 27, 7.00 p.m.) NEW YORK, December 26. The Batavia correspondent oi the “New York Times” says that officials there are certain that the question of oil exports ft out the Dutch East Indies to Japan will he •reopened with the arrival of Mi. Yoshizawa, the new chief delegate, and the other new members .of Japan’s so-called economic mission. The departing Consul-General, Mr. Saito, openly declared that Japan is very dissatisfied with the oil agreement obtained last autumn by the former delegate. Mr. Kobayashi. Mr. Saito added: “Certainly that question will be reopened, while the question of exports of rubber, tin, manganese and other war necessities which are acutelj needed by Japan and Germany is a secondary consideration.

“The Times” correspondent adds that the Dutch will stoutly resist Japanese demands for reconsideration of the oil allotment and also demands for essential war materials beyond Japan’s needs. If Japan’s pressure becomes intolerable the negotiations will be broken off and the details ot the demands and. other exerting of pressure will be publicized throughout the world. The British and American companies operating fields and refineries under concessions from the Government have already made long-term contracts to deliver their entire outputs of aviation gasoline and crude oil to Australia, New Zealand, India, South Africa and the Straits Settlement. Tile concessions prescribe that the Netherlands authorities shall have first call on their production “only in the event of a national emergency.” It might technically be claimed that tli'e Japanese pressure could be termed an emergency, but the Netherlands administration will refuse because ot their determination not to aid the Axis.

Japan is particularly irked by a provision of the original oil agreement under which she is forced to provide her own tankers and pay for her purchases in American dollars.