GREAT OIL WAR

Sun (Auckland), Volume 1, Issue 107, 27 July 1927, Page 1

GREAT OIL WAR

TRADE WITH SOVIET DISPUTE ARISES By Cable. —Press Association.—Copyright Reed. 9.5 a.m. NEW YORK, Tuesday. The warfare which has developed among the world’s large oil companies over the question of dealing with the Soviet Republic of Russia became ir tensified when Sir Henry Deterding, managing director of the Royal Dutch Shell group, issued a statement through a New York representative, attacking the policy of the Standard Oil Company, New York, and the Vacuum Oil Company, which have contracts under which they purchase oil from Russia.

The Standard Oil Company, New Jersey, recently announced that it would not deal with the Soviets, and that it and the Royal Dutch Shell group had agreed upon a joint policy not to deal with Russia until the oilowners had been compensated.

Sir Henry Deterding declared that the purchase of Russian oil by American companies was not only contrary to the best interest of humanity and trade honesty, but was bound to replace American oil, of which there is at present a large over-production. Mr. Walter Teagle, president of the Standard Oil Company, New Jersey, has sailed for Europe for the purpose of attempting to persuade Sir Henry Deterding to abandon any plans of retaliation, which, it is believed, might involve the invasion of American oil territory.—A. and N.Z.