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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa
(1937)

Afghanistan,   pp. 597-614 PDF (6.5 MB)


Page 597


THE NEAR EAST AND AFRICA
                       AFGHANISTAN
  GRANTING BY AFGHANISTAN OF AN OIL CONCESSION TO THE
               INLAND EXPLORATION COMPANY
890H.6363/72
  The Ambassador in Germany (Dodd) to the Secretary of State
No. 3112                               BERLIN, October 24, 1936.
                                        [Received November 6.]
  Sm: I have the honor to report that information has recently come
into the possession of the Embassy respecting the granting of an oil
concession in Afghanistan to American interests. While the Depart-
ment may already be aware of this matter, it has been learned that
the negotiations for this concession have been recently carried on in
Berlin between the American interests involved and the Afghan Min-
ister for Foreign Affairs, the latter having come here subsequent to the
sessions of the League Assembly in Geneva. Without being informed
in any way concerning the background of this matter, I present the
following information for what it may be worth:
  Several days ago Mr. Charles C. Hart, former American Minister
to Albania and Iran, in conversation with a member of the Embassy
staff stated that he was on the point of coming to an agreement with the
Minister of Foreign Affairs for Afghanistan, at present in Berlin,
respecting the granting of an oil concession in Afghanistan to an
American syndicate. The agreement in question, I understand, has
been drafted in final form and Mr. Hart intimated that it would be
signed in the near future.
  The American interests involved in this matter are, according
to Mr. Hart, the Seaboard Oil Company, the Texas Oil Company,
Case and Pomeroy, and Fisher Brothers. They are represented in the
negotiations with the Afghan authorities by Mr. Hart and Mr. Fred-
erick G. Clapp, Petroleum Adviser to the Imperial Government of
Persia in 1927.
  From the information available through Mr. Hart, the terms of this
agreement will grant the syndicate exclusive oil rights in five Afghan
provinces, the choice of provinces to be made within a year. It is
further stipulated that the ownership must remain American or
Afghan. Mr. Hart explained that a "few shares" might be allocated
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