OIL CONCESSIONS

Manawatu Standard, Volume LV, Issue 238, 5 September 1935, Page 7

OIL CONCESSIONS

HOLDERS TO WITHDRAW. AMERICAN ANNOUNCEMENT. RESULT OF CONFERENCE. (United Press Association—By Electric Telegraph.—Copyright.) WASHINGTON, Sept. 3. Mr Cordell Hull (Secretary of State) announced that, as a result of discussions lie had had with Standard and Vacuum Oil Company officials, they had informed him that they would withdraw from the concessions to develop more than half of Ethiopia. Mr Hull said that Mr H. E. Dundas, vice-president, and Mr George S. Walden, chairman of the board of directors, had informed the State Department that their corporation owned the concession granted the African Exploration and Development Company. After discussing the question with Mr Wallace Murray, chief of the Near Eastern division of the State Department, the two officials conferred with Mr Hull. Ho informed them that he had told newspapermen that the granting of a concession at this time was a serious obstacle toward the maintenance of peace and might have extreincJy serious repercussions, Messrs Dundas and "Walden returned'to New York and late on Tuesday informed Mr Hull that, alter consultation with their associates, they were prepared to terminate their part in the concession. Their representatives would inform the Emperor that they did not desire to go forward with the concession. Mr Hull said that his first knowledge that the Vacuum Oil Company was the owner came on Tuesday morning when Messrs Dundas and Murray conferred with him. .Mr Hull’s statement incorporated an explanation bv Mr Walden, who said: This company and its predecessor have been engaged in the petroleum business in Ethiopia for more than 20 years and were interested in the possibilities of petroleum production there and in other countries. Ethiopia would have received a royalty on all commercial petroleum produced under the agreement, which provided for no payment or loan of money, nor had any been made.

PRESIDEN r FS_COMMENT. AID TO NEGOTIATIONS.

Received September 5, 9.35 a.m. NEW YORK, Sept. 4. President Roosevelt expressed the hope that the cancellation of the Ethiopian leases would aid the peace negotiations. He declared that the cancellation was “another proof that since ’March 4, 1933, dollar diplomacy was not recognised by. the American Government.” The President also ordered all emergency Federal agencies under the control of the Budget Bureau to curtail their personnel with an assertion that the peak of the emergency had passed. LONDON GRATIFIED. COMPLICATION REMOVED.

LONDON, Sept. 4. The dramatic news from Washington of the abandonment of til Ethiopian concession is welcomed in official circles and tho Press as removing an embarrassing complication from the Geneva discussions. The Ethiopian Legation, at a late hour, had no news of the cancellation.

THE OHERTOK GROUP. BRITISH INTEREST. LONDON, Sept. 3. Messrs Hitchins and Jervis, two civil engineers, who are the London advisers of Mr Leo Y. Cliertok, who claims a prior right to concessions in Ethiopia, disclose that British capitalists are interested in his concession. Ahey also say that his group existed long before the present situation arose. Dr. Martin (Abyssinian Minister in London) wrote to Mr Cliertok on July 19 confirming the option on an offer of 50 years’ mineral concessions in consideration of a million dollar loan, stating that the concessions would not be granted until the money was produced.

The territories involved have yet to be defined, which means that the concession will not clash with that of Mr Riokett. The Abyssinian Government .officially states that it is fully entitled to grant a concession. Mr Rickett, who negotiated the cpncession for the African Exploitation and Development Company, professes ignorance of the Chertok concession.