THE CHINA MAIL, JUNE 11, 1988.
Soviet Oil For Japan's Ships
Tokyo Prepared To Defend Saghalien Interests
"Determined Action" If Necessary
Tokyo, June 1.
company was placed in such an result of as high ag fifty per cent., awkward position that it had to which very favourably consider giving up of its trial bor-with merely six to ten per cent, in compares ing rights immediately prior the the United States and 17 per cent. expiry of the original term of the in Japan Proper, concessions in December, 1936. Of the total oil requirements in The situation was remedied, Japan, which reach 4,000,000 metric That the petroleum resources of North (Rus-Foreign Office, which, after
thanks to efforts of the Japanese tons annually, North Saghalien sian) Saghalien have a far-reaching significance longed diplomatic
pro-supplies 200,000 metric tons and negotiations, Japan Proper 400,000 metric tone. to Japan is indicated in a report that the Government with the Soviet Government Soviet authorities have come to at- succeeded in concluding an agree-. It is quite imaginable that the ment is prepared to take determined action to de-for the extension of the term by a tach greater importance to the oil fend Japanese interests in the petroleum areas
resources of Saghallen, this being against the "increasingly severe and undisguised
RESOURCES ESTIMATED reflected in its. recent actions As to the oil resources of North suppressing the Japanese nationals in oppression of the U.S.S.R. authorities on the Japan-Saghalien, the Japanese interests who are engaged in development ese concessionaires.”
estimate them at approximately works. Soviet figures range from 300,000,- U.S.S.R. has recovered more than 200,000,000 metric tons, while the During the past ten years, the These estimates are merely 000 to 400,000,000 metric tons. ninety concessions from the hands proximate, yet there is no
ap-of foreign nations, and the Japan- that the northern section of Sagha-only foreign concessions remaining doubt ese oil rights on Saghalien are the lien has vast resources of oil, în in Soviet territories to-day.-Reu- view of the excellent trial drillingter.
The acquisition by Japan of the concession to exploit the oil resources of North Saghalien was one of the basic conditions for the restoration of diplomatic relations between Japan and Russia after the Communist revolution.
Furthermore, the legal founda- tion of
the Japanese rights is found in the provisions of the Basic U.S.S.R.-Japanese Treaty (The Convention Embodying Basic Rules of the Relations between Japan and the U.S.S.R.) and ac- companying protocol, which was concluded at Peiping in January, 1925.
According to the provisions of Article 6 of the 1925 treaty, the Government of the U.S.S.R. agreed to grant to Japanese companies and associations concessions for the exploitation of minerals, tim- ber and other natural resources in all the territories of the U.S.S.R Further, the provisions of the supplementary protocol permitted importation free of duty by Japan- ese interests of materials required for the execution of the conces- sions and also export of any pro- ducts of their undertakings. More- over, the U.S.S.R. authorities agreed to give due protection and conveniences to Japanese enter- prises under the concessions.
CONCESSION EXTENDED The Japanese. interests-engaged in the execution of these conces- sions were entitled to the rights to export their products freely and import, free of duty, food and any other articles required for the enterprises.
Following the conclusion of this Convention, the North Saghalien Oil Co., Ltd., was established in Japan, in 1926.
Since then, the company has made strenuous efforts to develop the oil industry in North Saghalien against severe climatic conditions, the disadvantageous geographical situation of the eastern coast of the island, and also, against de- liberate obstruction by the Soviet authorities. During the year end- ing in March, 1987, the company produced 156,200 metric tons of crude oil at its Oaha oil field alone. The production figures are almost five times as large as those for the first year of the operation of the Company.
DIFFICULTIES ENCOUNTERED The production operation of the company have thus progressed favourably, but it has encountered `considerable difficulties owing to the climatic conditions of the ter ritory. The drilling and ship- ments of oil importation of food- stuffs and all other requirements must be done within the short sum- mer period of four months.
L
In such circumstances, trial boring in the undeveloped fields did not progress as expected, and the
further five years
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