accordance with the precepts of international law and with the laws
of Venezuela, and that any action undertaken by the Government
of Venezuela to which the companies objected would be submitted to
the tribunals of Venezuela for fair and legal adjudication.

  I stated that this Government was of course deeply interested in
the satisfactory and equitable and legal adjustment of the controver-
sies which had arisen between the American companies and the Gov-
ernment of Venezuela. I said that for a long time past the Depart-
ment of State had been urging the American companies to negotiate
in a friendly and reasonable spirit the adjustment of these difficulties.
I stated that, of course, under present conditions, the continued and
full supply of oil from the Venezuelan oil fields was a vital necessity
for the war effort of the United States and of the nations which are
supporting, like Venezuela, the cause of the United Nations. I said
anything that would interrupt this essential war service during the
period of the war would constitute a grave danger to the Allied
Nations.
  Dr. Pacanins interjected to say that that is exactly the view of the
Government of Venezuela, and that nothing would be permitted to
interfere with the full and orderly operation of the oil properties.
  I stated that I welcomed the very categoric and satisfactory
assurances offered by the Government of Venezuela through Dr.
Pacanins, and that, as the Government of Venezuela well knew, this
Government would not claim, for American companies doing business
in other countries, and in particular in the other American Republics,
any undue or illicit privileges or rights, and would certainly condemn
any operations on the part of American interests doing business in the
other American Republics which constituted participation in bribery
or corruption or unlawful procedure. I stated in conclusion that if
the Governmrent of Venezuela adopted the policy announced to me,
namely strict observance of the tenets of international law, complete
'.ompliance with the terms of Venezuelan legislation, submission to
the tribunals of any controversies which could not be solved by nego-
tiation, and the determination to encourage the American companies
to continue to do business in Venezuela, I felt sure that fair negotia-
tions between the companies and the Government could result in a
just and satisfactory settlement. To that end, I said, the Depart-
ment of State would do whatever it appropriately could to facilitate a
friendly adjustment.
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