THE Hokitika Guardian TUESDAY, JANUARY 23. 1923. EXPLOITATING OIL

Hokitika Guardian, 23 January 1923, Page 2

THE Hokitika Guardian TUESDAY, JANUARY 23. 1923. EXPLOITATING OIL

i In connection with a recent cable ■ message stating an American mission representing oil interests were setting out for Baku, it is interesting to note ! that the Paris edition of the "Chicago jT’i’mno’’ recently published the fcl-'

lowing: - “America will dominate the I, exploitation ot the vast Baku oil district for at least fifteen years as the ' result of my eontmet with the Soviet Government,” said Mr Mason Day upon his arrival in Paris from Moscow on Monday. Mr Day, who is president j of the International Barnsdall Corporation. is leaving Fiance for New York to-mm-row (Tuesday) in the liner Olytn- ' pic. He "ill go directly to Washiiig- , toil, after reporting his success to the . executives of the lluriisdall iiiterbsts ill New York, to discuss the eoiltraet ' with the State Department. He does hot think the American Government j will offer any objection to his dealings with the Soviets. The Soviet. Government has given my company a. concession to exploit the State oilfields around Baku for fifteen years, ineluding renewals so that we shall simply he the agents of the Government. '['lie agreement applies primarily to State oilfields which have never been exploited, amounting to 60 per cent of the oil-bearing lands in the district, f would not have accepted the contract it it had applied to pre-war properties of the Standard Oil. the Royal Dutch. Nobel Brothers and other groups which have since been nationalised. 1 hope that the Barnsdall agreement will open the wav for those groups to establish relations with the Soviet Government. Despite Mr Day’s friendly assurances, lOprOsculittives of the Standard Oil Company, hte Royal Dutch. Nobel Brothers, and other big oil interests held aii important meeting at tile Royal Dutch offices. At I, Hue Royalo. Paris, a few days ago, and decided to tight jointly any company taking over nationalised oil properties in Russia. However, his assurances had not reached Paris then. This important move toward collaboration in tlie Russian oil question was caused directly by reports of the activity ot Mr Dav and other American agents. The original holders fear that new concessions will eventually include their properties. These pre-war owners will find that the Soviets are eager to deal with them, and will probably restore their properties on a fair basis. Mr Day explained yesterday. ‘Tt is necessary first to make an agreement with t.h Azerbaijan Government, and then to get the signatures of the tiers- 1 sary Soviet Commissars at Moscow, as 1 did. My contract was even laid before Lenin, who is rapidly recovering his health, and was signed by Rvkoff on behalf of Lenin.” Mr Day added that the Barnsdall Corporation, which is the European subsidiary of the Barnsdall oil interests of America, would furnish the technical staff, and that the Soviets would advance oil against the purchase of machinery in America. Me said that the Barnsdallongineers would he n't Baku within two months, and that, they would he producing oil within five months. His company will receive about 40 per cent of the total production as its share. His contract is supposed to he the largest which has been given liv the Soviet Government, as the value of the Stst" oilfields at Baku is incalculable. Air Day lias lieen a prominent American business man in Paris for many years and will establish his offices in Paris on his return from America, in two months.