It is understood and agreed that the present contract will not be valid nor bind the contracting parties unless the Concessionnaire arranges through the intermediary of one or more American banks of good financial standing for a loan of at least ten million dollars for the account of the Persian Government. The terms and conditions of such loan will be negotiated directly between the representative of the said banks and the Persian Government. In order to proceed with these negotiations the said representative will come to Teheran as soon as it will be possible for him to do so. On its side, the Persian Government agrees to furnish for the loan security which is satisfactory and acceptable to the representative of the bank or banks. And it is furthermore understood and agreed that until the terms of the present contract as well as the conditions of the above mentioned loan are ratified by the Medjliss, (as provided for in the Petroleum Law dated 23 Djauza, 1302) the Contractor will not be obliged to make any expenditures under this contract. Teheran, twentieth of December, one thousand nine hundred and twenty three. Read and approved: For the Imperial Government of Persia. The President of the Council of Ministers REZA [Seal of the President of the Council of Ministers.] Read and approved: For the Sinclair Exploration Company. Its authorized attorney Witnessed by the American Consul in Teheran, BERNARD GOTLIEB PERU BOUNDARY DISPUTE WITH COLOMBIA (See volume I, pages 351 ff.) THE TACNA-ARICA QUESTION (See volume I, pages 364 ff.) CONVENTION AND PROTOCOL BETWEEN THE UNITED STATES AND PERU FACILITATING THE WORK OF TRAVELING SALESMEN, SIGNED JANUARY 19, 1923 (See Foreign Relations, 1919, volume I, p. 45, footnote 47.) 737 POLAND EFFORTS BY THE UNITED STATES TO PREVENT DISCRIMINATION IN POLAND AGAINST THE UNITED STATES LINES IN THE TRANSPORTATION OF EMIGRANTS TO AMERICA 860c.56/61: Telegram The Consul General at Warsaw (Keena) to the Secretary of State WA ARSAW, January 20, 1923—10 a.m. [Received January 21-10:45 a.m.] Reference Department's January 12, 6 p.m. Re license United States Lines and my despatch number 4565 [4578] of July 17.1 Yesterday morning I accompanied Cowell, American representative of United States Lines, to Ministry of Commerce to discuss matter of license for shipment [sale?] of second- and third-class [tickets] for current year. The form of license offered by Polish authorities was similar to that described in enclosure to my despatch number 4578 of July 17 except that it called for direct transportation from Danzig of 50 percent emigrant passengers and balance to Bremen via Danzig only on United States Lines or Polish vessels. Polish authorities admitted that French lines for example under the license just issued them could transport 50 percent emigrant passengers direct by rail to Havre or Cherbourg and balance via Danzig to Havre by any vessels they elected to use and that other Continental and British transportation companies were similarly favored. They insisted, however, that they would not give any more favorable license than that proposed for the United States Lines to any line of vessels sailing from German ports. We informed them that the license was unacceptable in the proposed form and asked for equality of treatment with British and Continental lines in the matter on a basis of 50 percent emigrant passengers transported from Danzig by direct steamer and balance direct by rail to Bremen. They refused unconditionally that request and demanded immediate signature of the license as proposed failing which the office of the United States Lines, Warsaw, would be ordered to close. I thereupon advised the Polish authorities that under the circumstances I could not continue to grant visaes without first referring the matter to the Department for appropriate consideration and decision and would 'Not printed. close the visa section from January 22. A notice in writing to close was received by the Warsaw office of the United States Lines about one hour after this interview. I am giving public notice that alien visa section will be closed in this event January 22 and until further notice. Mail report will be forwarded as soon as data promised me by Polish authorities in regard to terms of licenses of other lines is received. KEENA 811.111/39098a: Telegram The Secretary of State to the Minister in Poland (Gibson) [Paraphrase] WASHINGTON, January 22, 1923-7 p.m. 4. For Consul General Keena: Your January 20, 10 p.m. [a.m.] The Department is unable to give its approval to the closing of the visa section of the consulate general for the reasons you give. Notice should be immediately withdrawn or modified and granting of visas subject to usual regulations should be resumed. Department will instruct you later regarding license situation. HUGHES 860c.56/63: Telegram The Minister in Poland (Gibson) to the Secretary of State WARSAW, January 24, 1923-6 p.m. [Received January 25-3:11 a.m.] 10. Department's 4, January 21st [22d], 7 p.m. Earnestly request reconsideration be given consul general's 1923, January 20th, noon,1a and January 24th, 4 p.m.,2 as I feel Department's decision on this subject of principle will largely determine our ability to afford effective future protection to American interests. Consul general's 1923 was perhaps over conservative in describing conditions. Representative of the United States Lines was peremptorily called upon for immediate signature of license agreement on totally impossible terms prepared by Polish authorities. In addition to showing clear discrimination as compared with conditions granted British and Continental navigation companies, terms were [offered?] which solely from business and operating standpoint are preposterous, and representative of the United States Lines prop 1a Evidently refers to unnumbered telegram of Jan. 20, 10 a. m., p. 738. 'Not printed. erly took the ground that agreement was not only discriminatory but as business proposition could not be given serious consideration. As immediate signature was not forthcoming offices of United States Lines were within one hour closed by the police and a guard posted to prevent transaction of business or any access to the office. This behavior is in striking contrast to attitude toward French lines which, having been proposed [sic] much more favorable, have withheld signature and are still permitted to operate freely without a license. French Legation informs me business will continue in this way pending an agreement which may not be reached for two months. While the Polish Government constantly emphasizes its gratitude to America it is [consistently discriminating] against American interests and resorts to all sorts of evasion in order to achieve its purpose. Reasons offered are clearly frivolous and contradictory. The real reason is a desire to enforce a boycott against German ports at our expense. In order to accomplish it they presume to dictate the travel routes not only of Poles but also of foreigners in transit after leaving Polish territory. This also applies to American consular agency inasmuch as license governs sale in Poland of all second- and third-class passenger tickets. If this claim recognized it may constitute a troublesome and dangerous precedent here in Poland and elsewhere in case other governments decide to assume similar powers. I have discussed this matter at length with consul general and commercial attaché. We are all firmly convinced that some such vigorous measure as that now taken is essential to any satisfactory settlement. In order to be effective it must have full and open support of the Department. Discussions have now continued for over two years during which time Polish authorities have sought by every subterfuge, often characterized by absence of good faith, to avoid granting us the rights and privileges accorded to other nations. On our side we have been handicapped through our inability to press the American interest in this matter because of the German connections of the United States Lines. Now that this has been removed and the issue is a clear one of whether American navigation companies are to have equal rights, we believe there is an excellent chance to bring the matter to a successful conclusion. If the Department reverses stand taken by consul general and reopens the matter for consideration it will seriously prejudice former contracts and no modification of concession terms will be possible as the Poles will conclude that American Government does not attach much importance to this principle of equal rights for its commercial interests [and] will be stiffened in their resistance to any demand for reasonable terms. Can see no benefit to be derived from yielding at this |