(a) Through the organization of a subsidiary governmental corporation with power to produce, purchase, refine, transport, store, and market oil and oil products.
(b) Through the formation of a permanent petroleum administration.
(4) To assure to our nationals the exclusive opportunity to explore, develop, and market the oil resources of the Philippine Islands, provided discriminatory policies of other nations against our nationals are not abandoned or satisfactorily modified.
I have given much thought during the past year to this problem of adding to our petroleum supply, and it has seemed to me but fair that we should first make every effort to increase the domestic supply through the methods that have been indicated—
(1) The saving of that which is now wasted, below ground and above ground.
(2) The more intensive use, through new machinery and devices, of the supply which we have.
(3) The development of oil fields on our withdrawn territory and in new areas such as the Philippines.
In addition, we must look abroad for a supplemental supply, and this may be secured through American enterprise if we do these things:
(1) Assure American capital that if it goes into a foreign country and secures the right to drill for oil on a legal and fair basis (all of which must be shown to the State Department) it will be protected against confiscation or discrimination. This should be a known, published policy.
(2) Require every American corporation producing oil in a foreign country to take out a Federal charter for such enterprise under which whatever oil it produces should be subject to a preferential right on the part of this Government to take all of its supply or a percentage thereof at any time on payment of the market price.