In the minutes from a “Secret” meeting of the Committee of Imperial Defense of the British Government titled “Policy Regarding Oil Concessions in British Territory” on 29 September 1930, it was stated that “while in British Guiana the discovery of oil indications in a boring for water has led to a demand on the part of local estate proprietors to lease their oil rights to United States interests.
In the minutes from a “Secret” meeting of the Committee of Imperial Defense of the British Government titled “Policy Regarding Oil Concessions in British Territory” on 29 September 1930, it was stated that “while in British Guiana the discovery of oil indications in a boring for water has led to a demand on the part of local estate proprietors to lease their oil rights to United States interests.”
Excerpt from the document
25. British Guiana.—The Governor of British Guiana advised that there was every indication of an opportunity now for developing any oil resources there might be in British Guiana by means of United States capital, that the ban on United States capital prevented our having recourse to it, and that British capital appeared to be disinclined to interest itself in the matter.
25. British oil interests appeared to be concentrating their attention on foreign territory, and it was accordingly proposed to inform the Governor of British Guiana that the restrictions hitherto imposed should be withdrawn. It was agreed that the question of general policy could not be altogether left out of account because the Secretary of State proposed to take action in British Guiana which was contrary to the general principles laid down for the operation of concessions by British controlled companies and might be used as a precedent elsewhere. The Colonial Office were ready to carry out any policy which might be considered expedient to secure that any oil won should be definitely under British control. It was pointed out that, in time of emergency, supplies of oil in British territory could be taken possession of by the British Government, and it therefore appeared desirable in British interests to increase them to the fullest extent, even if it could only be done by foreign capital and enterprise.
26. The representatives of the Admiralty, War Office and Air Ministry were disposed to recommend that a policy of British Control should be retained on the ground that any departure in the case of British Guiana might establish a precedent, and that the existing policy had proved a success in the case of Trinidad, and should not be abandoned lightly. In their view, the restrictions should not be withdrawn until the position had been considered further in all its bearings. They also urged the importance of oil developed on British territory being refined on the spot, or, at any rate, within the British Empire, and that the Governors right of pre-emption should be retained.
27. It was felt that, in the case of British Guiana, British’ Oil Companies had so far had but little opportunity of investigating the recently reported discovery of oil, and, at the suggestion of the Admiralty, the Petroleum Department communicated with three British Companies, who were furnished with information as to the conditions under which concessions could be obtained. One Company has sent out a geologist, who reported unfavourably, and the other two companies decided to take no action in the matter.
28. The Colonial Office have informed the Governor of British Guiana that only British Companies should be considered pending a decision on the general question of policy, and, in the meantime, the British Control Clause must be observed. The British Companies who were investigating the matter were, however, told that it might not be possible to maintain this attitude indefinitely.
