Under the petroleum agreement between the Central Powers and Rumania, the Central Powers' controlling company, the Oil Lands Leasing Company, is endowed with exclusive rights of the most far-reaching character for thirty years, with the right of prolongation for two subsequent periods of thirty years, making ninety in all.
Up to one-quarter of the foundation shares will be offered to the Rumanian Government with the right of transfer to private interests, but Germany and Austria-Hungary insure their control by the creation of preference shares with a fifty-fold voting right, and these shares are exclusively at their disposal.
A State trading monopoly in oil in Rumania is also provided for, the exercise of the monopoly to be intrusted to a company that is to be formed by a financial group designated by the German and Austro-Hungarian Governments.
All kinds of privileges are stipulated for the Oil Lands Leasing Company, the position of which is most carefully hedged around.
The parties are agreed by the terms of Article IV. of the foregoing agreement that immediately after the ratification of the peace treaty the Rumanian Government will enter into negotiations with the Governments of Germany and Austria-Hungary regarding the manner in which Rumania's surplus oil and oil products can be placed at the disposal of Germany and Austria-Hungary without endangering the vital interests of Rumania in respect of the country's industries and its own needs. The provisions of Article IV.,therefore, only enter into force should no other understanding have been arrived at before Dec. 1, 1918.
COST OF RUMANIA'S PEACE
A correspondent who was at Jassy for years and left there only a few days before the peace treaty was signed thus writes of Rumania's hard fate:
"What is the balance sheet of Rumania after eighteen months' hard struggle? Before August, 1916, she had absolute economic freedom and could sell her harvests to any one she pleased at any price she wanted. In 1915 and 1916 the Rumanian exporters sold wheat to Germany and Austria at from 10s. to 12s. a bushel. The Austro-German importers had to pay, besides, a heavy export tax in gold to the Rumanian Government. Now Germany has secured for herself and her allies practically the whole Rumanian harvest for years to come, at a price which she is going to fix, and in such conditions that 'no diplomatic intervention should be necessary in the future for securing the grain necessary for the allied Central Powers.'
"Rumania had in Europe, after Russia, the richest oil fields and the greatest production of oil. The fields were in American, German, and English hands, but the Rumanian Government had full control of the production and drew very large benefits. When the war broke out in 1914 the Rumanian Government at once prohibited the export of petrol and heavy oils to Germany. The German companies tried hard to send the much-needed petrol to their countries, but succeeded in smuggling only a small quantity through at enormous cost. After a year the production of petrol increased so much that the Government was compelled to allow the export of a small quantity, asking Germany in exchange to agree that Rumania should receive a certain quantity of goods the export of which was prohibited in Germany. The Germans will not forget that they had to pay for the petrol at the rate of about $200 a ton."