File No. 355.115 C76/11.

The American Minister to the Secretary of State.

No. 29.]

Sir: I have the honor to refer to the Department’s instructions No. 10 of January 24 last and No. 12 of February 16, and to state that on investigation the “black oil” referred to in the latter dispatch proves to be the same oil as has been the subject of previous correspondence and discussion. With reference to the inquiry contained in the dispatch of the 24th of January, I beg to say that my interview mentioned, with the Minister of Foreign Affairs, took place on January 4, as I did not receive the visit of the officials of the Continental Petroleum Company till after the 20th of December.

On the 26th of February, on the return of the Minister of Foreign Affairs from an absence, I sought an interview again to present to his excellency another note, a copy of which is inclosed, and again personally to press the matter of the discrimination against American oils. I referred to my previous visit and to the subject as it was then discussed, and said that I brought on this occasion new matter to his attention, stating that my Government was very anxious to have a definite reply and repeating the contents of the note which I had brought. Monsieur Davignon said that he had interested himself in the matter; that he recognized the subject as one with an international aspect; but that a difficulty lay with the technical experts, who were prejudiced in their opinions. I told him that the Department was anxious for a definite decision as to the attitude of the King’s Government, and his excellency replied that he hoped soon to send me an answer.

To-day I have visited the Baron de Broqueville, the Prime Minister, who is also the Minister of Railways, Posts and Telegraphs, and I asked his particular attention to this subject, with which he seemed to be familiar. I went over a few of the main points but particularly assured him, with more pressure than I have felt able to write into my notes on the subject, of the serious interest which my Government took in the matter and of my desire for an early and definite reply which I might forward for the information of the Department. Baron de Broqueville said that of course the desire of the King’s [Page 12] Government was to buy the best oil in the best markets and added that he also hoped soon to give a definite answer.

Mr. Grant-Smith also, this morning, called on Baron Capelle at the Ministry for Foreign Affairs, whose attention was drawn to the fact that the simple omission of the word “Russian” would not be satisfactory should the other narrow specifications, and particularly that of specific gravity, remain as at present. Baron Capelle expressed his interest in the matter and assured him that the Belgian Government was earnestly seeking a solution of the question which would be mutually satisfactory.

I have [etc.]

Larz Anderson.
[Inclosure.]

The American Minister to the Minister for Foreign Affairs.

No. 28.]

Mr. Minister: I have the honor to refer to previous correspondence during the past five years on the matter of the discrimination which appears in the specifications issued by the Belgian State Railway Administration, in calling for bids for crude lubricating oils. This discrimination consists in the exclusion from competition of all oils other than those of Russian origin.

When in January of 1910 the Department of State of the United States entered into negotiations with the Government of Belgium, to determine whether the minimum tariff of the United States should be granted to products imported from Belgium, or originating in this country, the Belgian Legation in Washington was informed of the willingness of the President to proclaim, on behalf of Belgium, the extension of the minimum tariff to imports of Belgian origin into the United States, upon the assumption that the Belgian Government would give its prompt and earnest consideration to the several matters of concern which had been brought to the attention of the Department of State. One of these matters, as set forth in a note of January 29, 1910, to the Belgian Minister at Washington, Count Conrad de Buisseret, was the recognition of American petroleum lubricating products on an equality with those of other countries in the specifications of requirements for railroad supplies. The Department of State was assured by a note dated February 1, 1910, from the then Belgian Minister, that he had not failed to transmit the contents of the Department’s note of January 29 to his Government, at the same time recommending prompt and earnest consideration of the matters which had been brought to his Government’s attention, both through the American Legation at Brussels and through himself.

Notwithstanding the assurances of the Belgian Minister that the alleged discrimination against crude and lubricating oils would have consideration in view of the granting of the minimum tariff of the United States, no such consideration appears to have been given in the preparation of the specifications published in the latter part of 1910, relating to the requirements of the Belgian State Railways. Upon notification of this oversight the American Legation at Brussels brought the subject again to your excellency’s attention, seeking the consideration to which as a matter of good faith, under all the circumstances of the case, the Department felt American oil was entitled.

The same discriminations continued to appear in the specifications in question during the year 1911. As a special instance it may be added that the Continental Petroleum Company, acting on behalf of the Texas Oil Company, anticipated the annual advertisement of the Belgian State Railway Administration and prepared itself especially to meet the requirements as to points relating to the quality of these oils, and has expressed its belief that, if fairly considered, its oils would meet all the conditions as well as the Russian. It also appears that the Continental Petroleum Company received no official advice of the adjudication of crude lubricating oils from the Belgian State Railway Administration until December 13, 1911, and that the limit for the receipt of bids was fixed in the demands as December 20, 1911. Notwithstanding this short notice [Page 13] the Continental Petroleum Company proceeded to tender its oils under date of December 16.

I beg to refer to the occasion of my personal visit to your excellency on January 4 last when the subject of this matter of the discrimination against American oils was discussed at length. Your excellency was then so good as to say that you would confer personally with your colleague of the Railway Administration in this matter. I have the honor accordingly to ask your excellency to examine this further exposition of the subject, especially with regard to the consideration which was given on the occasion of the application of the minimum tariff to Belgium, as may be found in the correspondence referred to in this note, and I beg to add that my instructions are to express the earnest desire of my Government to obtain for American oils in this instance a just and fair consideration, and I would be gratified if your excellency would be so good as to advise me with regard to any definite conclusions on the subject to which the Government of the King may have come, in order that I may transmit the same to the Department of State for the information of my Government.

I avail [etc.],

Larz Anderson.