§ VISCOUNT TEMPLETOWN rose to ask His Majesty's Government if they have taken any steps to secure that the oil in Palestine and in Trans-Jordan shall be absolutely secured to British Government control; and to move for Papers. The noble Viscount said: My Lords, in order to save your Lordships' time I ask permission practically to read what I have to say on this subject. It is very short, and I hope it will be quite clear to the noble Earl who is going to answer me. There are no traps in it. It is simply a plain Question to which I humbly ask a plain answer. I think it is now generally admitted that the oil position of Great Britain, with the much increased needs of her Navy, leaves much to be desired and that in case of war it may become truly perilous. I submit therefore that we had no right to neglect anything that might help to improve the situation, and once more I call upon His Majesty's Government to develop the oilfield which lies in the mandated territories of Palestine and Trans-Jordan.
§ This oilfield up to the present has been left to private enterprise, which is paralysed by many obstacles. The sceptical attitude of the Government discourages the British investor, and it has been found impossible to raise the necessary funds. The powerful international oil combines use all their influence against the project, and there is strong opposition from the German potash industry, which, I understand, fears the competition to its industry of the vast beds of mineralised potash salts, which were disclosed below the ground by the Standard Oil Company when drilling for oil. But were His Majesty's Government to develop the oilfield, these obstacles would disappear. They have the right under the Mandate to institute the necessary test drilling, but they say that oil development is a risky business, not suitable for Government funds. Were 321 they not, however, actively engaged in securing British participation in the oilfields of Persia and Mosul before the value of these oilfields had been proved? They say that views are conflicting with regard to the amount of oil in Palestine and Trans-Jordan, but I maintain that a strong case has been made out for the existence of a considerable amount of oil at depth.
§ There are twelve important manifestations, direct or indirect, for which oil experts look, when reporting on a district, and every one of these signs is present in Palestine, including natural gas, thermal sulphurous and saline springs, and exudation of asphalt, etc. The quality of the oil in the seepages is high, and though seepages alone are not evidence of a large supply, they are sufficiently important to warrant the institution of drilling tests, for practically every important oilfield in the world has been discovered by seepages alone. Incidentally, how is it that several reports of experts in favour of the matter have been published, while no adverse reports appear in the light of day? Are there really any adverse reports, or are the Government influenced by outside commercial interests?
§ Much preliminary work has already been done on the oilfield, so if the Government instituted test drilling forthwith, it would cost some thousands of pounds, and not the exaggerated sums which the Government visualise. And if oil should be discovered to exist in considerable quantity, would it not be of untold benefit to this country? Surely, then, the possibility of this benefit is worth the risk of a few thousands of pounds. His Majesty's Government should seize such an opportunity now before it is too late, and the oil is lost to Britain. What will the country say if His Majesty's Government refuse to act, and the rights in the oilfield having passed to representatives of another Power, it proves on development to be rich in oil? If only for the sake of the Navy, who are, I understand, keenly anxious for test drilling for oil in this strategically important spot in Palestine, I ask the Government to act at once, and so avoid the possibility of such a calamity.
§ THE PARLIAMENTARY UNDER-SECRETARY OF STATE FOR THE COLONIES (THE EARL OF PLYMOUTH)322 My Lords, the noble Viscount asked a very similar Question to this not many months ago. I then took the opportunity fully to explain the position with regard to the development of oil in Palestine and Trans-Jordan. I do not think your Lordships would wish me on this occasion to recapitulate in detail what I then said. I really have very little to add to it. The point is this that, no substantial oil resources have yet been proved to exist in Palestine or in Trans-Jordan, and consequently the development has not passed beyond the exploratory or speculative stage. His Majesty's Government are following the policy which has worked well in a number of other places—namely, a policy of development by private enterprise under the safeguards imposed by up-to-date mining legislation. The progress of development, I need hardly say, will be very carefully watched in the future.
I do not fully understand what the noble Viscount means by the phrase he has used in his Question, "absolutely secured to British Government control." I think I made it perfectly plain when we last debated this question that Palestine and Trans-Jordan are mandated territories, and that under the mandatory system it is the interests of the mandated territories themselves which have to be considered. The Palestine Order in Council of 1922 vests all minerals in the High Commissioner—that is, subject to any rights subsisting at the date of that Order. The organic law of Trans-Jordan similarly vests the ownership of minerals in the Amir. Any one who wants to prospect for oil in either of those territories has to obtain a licence from the Government of that territory, and any one who finds and works oil has to pay a royalty to the Government concerned. To this extent the Government have control of the situation, but I must repeat that it is the duty of His Majesty's Government, as mandatory, in this case to safeguard the interests of the mandated territories, and they are proposing to do this in accordance with the experience they have gained elsewhere by permitting suitably qualified experts to explore the oil possibilities under conditions laid down by the mining legislation to which I have referred.
The noble Viscount has asked what the position would be in times of emergency. I have already explained what the policy 323 of his Majesty's Government at present is, and I have further explained that there is as yet no certainty of the presence in either of those two countries of oil in economic quantities. In those circumstances the question of control of the oil supplies in a time of emergency has not yet arisen. That will only happen, firstly, when the time of emergency occurs, and in the second place, when the presence of oil in those two territories has been proved and the issue of mining leases under the existing legislation comes under consideration. What I can tell your Lordships is that His Majesty's Government in their capacity as mandatory have every intention of examining the question to ensure that in a time of emergency the oil resources of Palestine and Trans-Jordan would be used in the best interests of the two territories concerned.
VISCOUNT TEMPLETOWNMy Lords, I have listened with very great interest to the speech of the noble Earl. I suppose—shall I say as a matter of precaution?—I ought to say that I am not satisfied with the reply, but I am very much in sympathy with a very great deal that he has said. I only hope that when the time comes when he wants to have his finger on the oil that is there he may not find it in the possession of somebody else. That is all I am trying to get the Government to see. I should like to be allowed to say—I have not mentioned it before—that I was at one time chairman of a syndicate drilling for oil in Wyoming, one of the richest parts of the world. We drilled on behalf of two very large Continental companies and I should like to tell your Lordships of our experience in a few words to show what uncertainty there is about oil drilling.
We drilled to an average depth of 1,000 feet and we found oil in ten or twelve wells. One day we had a cable asking whether we would drill to 3,000 feet. I said "No." I said we had always found oil at 1,000 feet and I did not see any good in risking money by boring to 3,000 feet when it was not necessary. That did not satisfy this continental company and they sent a deputation from Brussels to see me. I told them they could look at the books and see at what depths we found oil, and that it was usually at a depth of 1,000 feet. I told them that if they were anxious 324 to drill to 3,000 feet they would be paying for that when a depth of 1,000 feet was sufficient. However, they insisted, and I said: "Very well, I want £3,000 in this office next week and I will move my drills." At the end of ten days a cable came to us from the engineer saying: "We have struck a gusher, 800 barrels a day. Am I to go on?" We stopped. The result was that they paid £3,000 for £1,000 worth of work just because they would not take the evidence in front of them. I beg leave to withdraw my Motion.
§ Motion for Papers, by leave, withdrawn.