OIL FOR JAPAN

Dominion, Volume 34, Issue 119, 13 February 1941, Page 8

OIL FOR JAPAN

No British Ban On Supplies POSITION IN DUTCH EAST INDIES

(Received February 12, 7.5 p.in.) (British Official Wireless.)

RUGBY, February 11

In the House of Lords, the Dominions Secretary, Lord Cecil of Essenden ( formerly Viscount Cranborne), replied to Lord Davies v.ho asked whether any companies controlled by British or American interests were now supplying oil to Japan and whether arrangements had been made with the Netherlands Government to prevent the export of oil and other raw materials from the Dutch East Indies to Japan. Lord Cecil replied: “It would not be proper for me to go into details, but I may say that the policy in practice of the British Governments in the Dominions in relation to exports to neutral destinations is, in general, similai to our own. In the case of important commodities exports from the Dominions, as from the United Kingdom and the colonial Empire, are subject to control through the export licensing system and export licences are granted onlv when certain conditions are fulfilled. . . “It is, of course, for each Dominion to determine the conditions on which it will permit the export of raw materials from its own territory ami those conditions naturally are more strict m the case of some commodities than others. In certain cases, for example nickel and copper, the Dominion Governments concerned have instituted a total prohibition of exports to destinations outside the British Empire, except, possibly, to the United States ot America. . “I would add that there is iu all these questions close and constant consultation between the British Goveinment and the Dominion Governments.

Lord Cecil said that the companies operating in the Netherlands. East Indies, in which there are British minority interests, recently came to an agreement with the Japanese Government for the supply of a certain quantity of oil, for the most part on six months contracts. Contracts. with the Anglo-Iranian Company, which it ere negotiated in 1930 and came in force early iu 1940 limited the quantity of oil being supplied. “Except as regards the grades covered bv the embargo imposed in August last, .which dealt with high octane spirit and aviation crude oils. There is so far as the British Government is’ aware, no legal obstacles in the way of Japan obtaining from us those quantities for which she is able to place contracts,” Lord Cecil said. “With regard to the second part of the question dealing with the export of oil and other raw materials from the Dutch East Indies, this is a matter for the Netherlands Government, whose policy on''this matter is no doubt governed by considerations to which they have given careful thought.” Lord Davies also asked whether any supplies of raw 'materials were now being exported from the Dominions to Japan.