OIL RESOURCES

Manawatu Times, Volume LIII, Issue 6632, 11 June 1928, Page 12

OIL RESOURCES

WORLD CARTEL URGED. TO PREVENT CONFLICT. development of the world 8 oil resources, their international implications, and possible effect on world relations were discussed at a luncheon of the Foreign Policy Association, just held at the Astor Hotel (states the ‘Christian Science Monitor'). Professor Herbert Peis, professor of economics at the University of Cincinnati, reviewed at some length the circumstances and conditions surrounding | the production of oil, and declared 1 these arc largely responsible for the j controversies which have arisen at various times for control of the oil fields. He characterised the American poliev *' equality of access for every nation to available supplies wherever they exist’’ as justifiable because of the action of i other nations, and recommended establishment of "an international cartel' under the international policy control to determine the distribution and sale of oil supplies during peace time. ’ ’ ‘Finally, to prevent a continuation of constant conflict,'” - he said, ‘‘to provide a just and generally acceptable settlement of differences' which may arise, there is immediate necessity for treaty agreements, bilateral or multilateral, dealing with the issue of ‘equality of access’ to supplies, the ‘open door,’ and secondly, with the rights of governments to control, regulate, and impose terms upon foreign enterprises exploiting oil resources within their domains. ’ ’ Professor Feis expressed the opinion that no oil-possessing nation had the right to make terms that were too onerous for the rest of the world, and that no consuming country had the right to make unfair demands. Henry E. Norton, secretary of the American Asiatic Society, endorsed Professor Feis’s views on the advisability of avoiding Government interference in oil disputes, but expressed the opinion that national welfare should not-be overlooked. ‘The participation of Governments in business affairs is fraught with great danger to’ peace,” Mr Norton said, “and it is in accordance with both tho British ■ and American tradition to leave such affairs in the hands of businessmen. But, where a business development, either with or without Government assistance, tends to create a situation which threatens the welfare of tho American people the Government is entirely justified in using its influence to avoid such a iflisfortunc.”