day of March, 1921, the sum payable to the Commissioners under the foregoing provisions of this Act exceeds the amount remaining due from the importer in respect of the goods imported, the sum payable to the Commissioners shall be reduced by the amount of such excess, and if any dispute arises as to the amount of such reduction the matter shall be referred to such referee as aforesaid.

4.-(1.) Where any person is under a contract entered into before the 8th day of March, 1921, liable to accept bills of exchange or make advances in connection with the importation of any goods, he may apply to the High Court, and the Court, if satisfied that by reason of the provisions of this Act the enforcement of the contract according to its terms would result in serious hardship to him, may, after considering all the circumstances of the case and the position of all the parties to the contract and any offer which may have been made by any party for a variation of the contract, suspend or annul, or with the consent of the parties amend, as from such date as the Court may think fit, or stay any proceedings for the enforcement of, the contract or any term thereof or any rights arising thereunder, on such conditions (if any) as the Court may think fit.

(2.) The Lord Chancellor may make such rules and give such directions as he thinks fit with respect to the procedure on applications under this section, and such rules may provide as to the notice to be given to other parties to the contract and the manner of giving such notice.

(3.) In the application of this section to Scotland, references to the High Court" and to the Lord Chancellor" shall be construed as references to the Court of Session," and references to rules" shall be construed as references to "Act of Sederunt.'

5.-(1.) The Board of Trade may by order

(a.) Reduce as respects articles of any class, make, or description the proportion of the value of the goods payable to the Commissioners under this Act, or exempt articles of any class, make, or description from the provisions of this Act;

(b.) Vary as respects articles of any class, make, or description the percentage referred to in Section 2 of this Act;

(c.) Substitute as respects articles of any class, make, or description some later date for the 15th day of April mentioned in Section 1 of this Act;

(d.) Extend the classes of contract to which Section 4 of this Act relates:

Provided that the Board of Trade shall not make any such order except on the recommendation of a committee constituted as hereinafter provided.

(2.) For the purposes aforesaid, the Board of Trade shall

appoint one or more committees consisting mainly of persons of financial, commercial or industrial experience.

(3.) Any Order made by the Board of Trade under this Act shall be published in the London, Edinburgh, and Dublin Gazettes," and in such other manner as the Board may consider best adapted for informing persons affected thereby.

(4.) Anything authorised to be done by the Board of Trade under this Act may be done by the President, or a secretary, or assistant secretary, of the Board, or any person authorised in that behalf by the President.

6. If a resolution is passed by both Houses of Parliament for the repeal or suspension of this Act, it shall be lawful for His Majesty in Council by Order to repeal or suspend the operation of this Act to such extent, and, in the case of suspension, for such period, definite or indefinite, as may be specified in the resolution.

7.-(1.) This Act may be cited as "The German Reparation (Recovery) Act, 1921."

66

(2.) This Act shall be construed together with The Customs (Consolidation) Act, 1876," and any enactments amending that Act.

SCHEDULE.

"Customs Consolidation Act, 1876," Sections 30 and 31, as modified.

30. If any dispute arises as to the proper amount payable in respect of any goods the importer or consignee or his agent shall deposit in the hands of the collector of customs at the port of entry the amount demanded by such collector, which shall be deemed and taken as the proper sum payable under this Act unless an application is made for a reference to a referee appointed by the Treasury within three months after such deposit to ascertain what sum is payable in respect of such goods, and on payment of such deposit and on the passing of a proper entry for such goods by the importer, consignee, or agent, the collector shall allow the delivery thereof.

31. In case no such application for a reference is made, such deposit shall be applied in the same manner as if it had originally been paid and received as a payment due under this Act in respect of such goods, and in the case of such application if it shall be determined that the sum so deposited was not the proper sum, but that a less sum was payable, the difference between the deposit and the sum found to be due shall be returned to such importer with interest at the rate of 5 per cent. per annum for the period during which the sum so paid or returned was deposited, and shall be accepted by such depositor in satisfaction of all claims in respect of the importation of such goods and of all or any damages or expenses incident thereto.

DESPATCH from His Majesty's Secretary of State for Foreign Affairs to the British Ambassador at Washington enclosing a Memorandum on the Petroleum Situation.London, April 21, 1921.*

Sir.

Earl Curzon to Sir A. Geddes (Washington).

Foreign Office, April 21, 1921. I TRANSMIT to your Excellency herewith copy of a memorandum which has been prepared by the Petroleum Department dealing with the general petroleum situation.

2. In view of the public interest in the question of petroleum supplies and in the policy of His Majesty's Government, an attempt has been made to give in this memorandum a summary of the conditions now existing in this country, in other parts of the British Empire and in various foreign countries. The memorandum will be laid before Parliament, and you are at liberty to make use of the facts contained in it in replying to any enquiries which you may receive on the subjects dealt with.

I am, &c.

CURZON OF KEDLESTON.

Enclosure.

Memorandum on Petroleum Situation.

STATEMENTS have frequently appeared in the foreign press during the past year to the effect that His Majesty's Government are co-operating with British commercial interests to secure an undue share of the petroleum resources of the world, and, while they are entirely without foundation, they may through constant repetition have obtained some credence.

Great Britain is, next to the United States and (in normal times) Russia, the largest consumer of oil in the world. Over 90 per cent. of her navy is oil-fired (as compared with 45 per cent. before the war), as is a rapidly increasing proportion of her merchant marine. Her present home resources consist of one well giving a daily production of 1 ton, and Scottish shale fields which yield about 165,000 tons of oil products annually.

In 1920 Great Britain imported about 3,368,600 tons of oil (motor spirit, kerosene, fuel oil, lubricants, &c.) of a total value of 67,000,000l. Of this, 61 per cent. in quantity and 68 per cent. in value came from the United States, 37 per cent. in quantity and 30 per cent. in value from other foreign countries, and 2 per cent. in quantity and 2 per cent. in value

* Parliamentary Paper, "Miscellaneous, No. 17 (1921)."

from British possessions. During the war the annual imports of petroleum rose as high as 5,160,000 tons.

The figures which have been quoted indicate that, although the consumption of Great Britain per head is only about one-sixth of that in the United States, her requirements are, nevertheless, very large, and are at present met almost wholly from foreign countries at an extremely high cost. Much has been written as to the so-called closed door" policy in the British Empire, but even if such a policy was in force it would surely not be difficult to find arguments in its favour in view of the very serious position of the British Empire as regards petroleum supplies. It is proposed, however, to deal with each part of the Empire in turn, stating also the position of Egypt, and to show what the charge as regards the closed door really amounts to. At the same time, a brief note will be given of the production and prospects of each territory.

United Kingdom.-There is no ban whatever on the exploitation of possible oil-bearing lands by foreigners or foreign companies. A regulation, which was introduced during the war, restricting the participation of foreigners in British oil undertakings has been withdrawn. As already explained, the total output of oil products in Great Britain is less than 170,000 tons. To secure 165,000 tons from the Scotch shale fields, it is necessary to mine 3,000,000 tons of shale and to employ 10,000 men, and the high costs have frequently menaced the existence of the industry.

Canada.-Annual production, about 34,000 tons, which meets only a small proportion of the Dominion's requirements. Favourable indications have been found in the North-West Territories, but the remoteness of the locations must render development slow. Exploitation in Canada is confined to British registered companies, but it is worth noting that the most active company in Canada, in regard to both imports and prospecting work, is Imperial Oil (Limited). a subsidiary of the Standard Oil Company of New Jersey. There are extensive shale deposits of varying richness in New Brunswick and other provinces.

Union of South Africa, Australia, New Zealand and Newfoundland. In none of these Dominions is there at present any general prohibition of the exploitation of oil lands by foreigners, though in certain of the Australian States regulations introduced during the war confined the issue of mining leases to British subjects. In the Northern Territory of Australia leases are, as in Canada, restricted to British registered companies. No important production has been obtained in any of these countries, though shale is worked on a small scale in Australia, and a trifling quantity of oil has been obtained in New Zealand. Exploration is being carried

on in l'apua on behalf of the Imperial and Australian Governments, but so far without definite result. In Newfoundland the grant to a British company of a prospecting licence for five years over all unallotted Crown lands is being considered. India. Prospecting or mining leases have been, in practice, granted only to British subjects or to companies controlled by British subjects.

The production of petroleum in India is about 1,200,000 tons per annum, which is insufficient to meet the country's needs. Large quantities are imported from the United States, the Dutch East Indies, and, to an increasing extent, Persia.

Trinidad. In the case of private lands there is no nationality restriction, but the lessees of Crown or alienated* lands must be British subjects or a British-controlled company. Exception has, however, been made in the case of an American company which, in view of good pioneer work done on private lands, has been permitted to lease certain Crown lands.

Trinidad's annual production is about 295,000 tons, and development is actively proceeding, which it is hoped will lead to a material increase.

British Guiana, British Honduras, Nigeria and Kenya Colony. Similar regulations to Trinidad. No production and no definite prospects, but prospecting work is being done by two British companies in Nigeria and applications from prospectors are under consideration in British Honduras and Kenya.

Jamaica and Barbados.—No nationality restrictions. No production, but prospecting work is being done by a British company in Barbados.

Egypt.-No nationality restrictions. Annual output 155,000 tons, produced by a single company, which discovered a valuable deposit in 1914. Several other firms have recently started prospecting operations.

Somaliland. No production. Prospecting is being carried out on behalf of Government. No nationality restrictions. Sarawak.-Annual production, 150,000 tons. No

nationality restrictions.

Brunei. No production. Prospecting has been proceeding for a number of years without tangible result. Nationality restrictions generally similar to those in Trinidad.

British North Borneo.-No production. No nationality restrictions. Prospecting is being carried on by Japanese and British companies.

The foregoing shows the extremely small oil production of the British Empire and the absence of any general policy

* I.e., lands, the surface of which has been alienated by the Crown for agricultural purposes since January 17, 1902.