THE COVENANT AND THE OIL
... (to consider) ... oil ... our history has two poles ... the first ... (YPF. and Mosconi) ... (and) ... contracts, initiated by he signed with the 'California Argentina' ... one to another ... is an almost unexplored chronological gap ... in which the concerted action of "World Oil Cartel" introduced its principles in our country and determines all ... (possible) ... politics ... (national) ... (and) ... in short, was the oil policy ... dominant political ... contemporary born Roca-Runciman Pact, was largely the result and the reason for contracts ...
... (Roca-Runciman Pact) ... (was) a system by which we are governed cows ... ... also the currency and oil.
... ... To make address changes ... Argentine oil between the revolution of 1930 and beginning of the Peronist government, it would be ... (must attend) ... the establishment and consolidation of the "International Petroleum Cartel '... (the) ... review is based ... research ... (of) ... Senate (U.S.) ... in 1952 ...
ORIGIN AND CONSOLIDATION OF INTERNATIONAL POSTER
... (the) ... establishment of a "Cartel International, goes through various stages ... shall be ... (must have) ... reason enough to encourage capital ... antagonistic to reconcile ... for the perfect articulation of such a complex mechanism as a 'cartel' ... can not be the result, ..., a first piece of paper, but the product of long experience that fits the relationship of the parties and establishes institutions and trading companies ... necessary ...
THE ORIGINS OF THE POSTER
... a holding company focused vertically capital ... ... a "Trust" or a "cartel" are horizontal organizations ... (its component lost) ... her personality and independence ... (with) ... ... limits that have been agreed ... (the) ... "Holdings" could fit in a single "Cartel" ... (and) ... also components ... (of a 'cartel') ... ... can be a "holding" ... (it is) ... its proportionate interest in a specific sector ... example, distilleries, pipelines or shipping, which ... are used together and according to the proportions assigned ...
{I would an intervention to highlight the contemporary and parallel events in our country and world, Argentina created its
'Address' before the U.S. and the action shows a 'keep up' with the subject. Argentina starts simultaneously with the world oil process will be enemies of the Argentine
} ... ... the first agreement between big companies ... (where) ... the price war broke out in India between ... (the) ... ' Standard Oil '... and ...' Royal Dutch Shell 'in 1927 and then ... widespread ... (to Europe and America) ... (and) ... that ... (to) reconcile this fight ... ruined ... (looked) ... an agreement on maximum oil heads ... Teagle ... ('Standard'), Deterding ... ... ('Royal Dutch Shell') and Codman ... ... ('Anglo Persian') ... (were) ... the bases of an initial agreement ... (on 9/17/1928) ... (called) ... "Pool Association of 1928" or ... "Achanacarry Agreement" ... (by the castle where it was signed) ... containing the 'basics' ... (known) ... as early "as-is"
- (Consider 1928 as base to determine the share to the future in each other's business.
- (Use all the installations, equipment and facilities).
- (Restrict the construction of new facilities)
- (unification of product prices, regardless of their point of origin).
- ... supply obligations from the area ... closer. Hold
- overproduction ... ...
- Delete all competition program ...
... (the) Contracting ... ... (agreement) ... the prices were ... (controllable) ... (and) ... to neutralize the competition of Russian oil ...
CONSERVATION POLICY
principles ... " As-is "... (from surgery) ... by 1930, with the slogan of conservation ... (from) reserves ... (USA) ... at ... (19/01/1929) ... created the" Export Petroleum Association Inc "... it was the regulator of U.S. exports and prices in the world market ... (and) ... penetration had begun in the Middle East. The 'Iraq Petroleum Co. Ltd.' ... was formed with the support of French capital, American and British concessions to exploit the 'Turkish Petroleum Co.' Mr. Gulbenkian and those who gave in exchange for shares in the corporations ...
... the "cartel As-is" ... (identify) ... ... policy and its objectives with the defense ... ... ( USA) ... missing all limits ... among them best ... and the convenience of U.S. foreign policy ...
... Oil policy ceased to be an expression of business ... ... to become a public policy interest to the major foreign powers ... ...
POSTER IN EUROPE
Simultaneously ... (reach) Romania ... (an) agreement ... "As-is" and its national oil companies ... (accepted) ... reduce its production competitive in exchange for better prices ... featuring a European market governed by the "cartel" ... 1932 ... conference ... (with assistance ) Russian representatives ... (with the goal / excuse) ... the interests of global conservation ... (who) ... was the faithful portrait of the principles of "As-is" ... Russia ... (was) part ... (1932) of "cartel" Swedish ... (1935) of German ... (until that year he retired).
to ... 1935 ... (year of the signing of the Roca-Runciman Pact), the "cartel" ... (had) ... managed to balance production and consumption ... solved the problem ... of the antitrust laws ... ( USA) and suppressed the Russian intervention in the global market.
... 1955, "Economic Comissiona for Europe '... (he) ... a report on the oil trustificación, repeating the findings of the' Federal Trade Commission '... nature ... secret ... (above)" ... an influence damaging the European economy in the interests of the monopolies "...
PRICE 'FOB' PRICE 'CIF'
('FOB' = 'Free On Board' = price of goods placed free on board" ) is ... the price ... in place ... boarding.
('CIF' = 'Covered Freigthen Invoice' = price in the port of destination)
... in the ... (first) ... freight ... (by) ... the buyer and the ... ( second) ... (and) ... the seller.
... (by) ... Achanacarry ... (was found) ... commodity prices at the same ... ... (however point) ... ...
origin
... equal prices in consumer markets located at distances the disparate
sources ... ... the price
'FOB' ... (includes a phantom freight always against the buyer) ... (for) ... the Arab oil European buyer paid as if the product came from ... (USA) . And the Latin American consumer products - Americans - paid a phantom freight as if the origin is Arabic.
... ... extortion and monopoly, the 'Cartel' called it ... "retain the geographical advantages" ... (was a) ... no free market competition, Argentina was no exception, ALWAYS YOUR IMPORT WAS BILLED 'FOB' ON TEXAS WITH THE FREIGHT CHARGE ... GHOST ... Here's how cunning ... the 'Cartel' to keep the division of clientele ... (all the oil activity in the country, conducted by the U.S. and England adhered to the principles 'as-is').
... (20/01/1930) ... new deal ... 'Memorandum to European Market' ... (for) ... the problem of world domination ... "agreed to act as a unit" ... (for) ... control ... production the mining areas ... and ... the distribution of markets consumers in the areas ... ... ...
The 'Cartel' ... no longer a simple agreement or a kind of ideal entity to become a real life body with authorities ... ... (made up) ... and ... (his) ... roles were the global application of principles 'as-is' ... ... the great expansion began to become holding companies and intermediary companies, involving perfectly planned ... so wove the intricate mesh of relationships that has s example ... In oil exploitation in the Middle East.
FINAL SET
... 1934 ... His object was subjected to uncontrolled producers ... (in) ... the local markets ... with the 'cut price' that could make those companies outside the conventions ... To ... (fix e) ... involve these 'uncontrolled' within the 'signs' local, in ... (06.1934) ... a new agreement ... 'Draft Memorandum of Principles' that ... (gave) the principles 'as-is' the nature of nature rules comprehensive and lasting ...
{And yet there are those who pretend to doubt, if the coup of '30 did or did not smell of oil!}
...
With this final adjustment, ... remove or neutralize 'the moths of the market "... {} YPF for example, the' cartel '... (consolidated ) ... its dominance in the global market. No other 'cartel' in any financial or industrial activity took the capitalist power and profits of the "oil cartel." No other involved ... (in) their action so many vested interests, that the same could push the world economy giants that government. Energy is the basis of all global activity and the controlled ... ... as a monopoly and perfect agreement, seven large companies, five of ... (USA) and two English ... a new division of the world ... since then and nothing has changed.
...
THE WORLD DOMINO
... (with) ... ... Achanacarry Convention (1928) ... and through ... three ... development tools, had reached an international agreement ... ...
{affecting all included - and especially - the non-signatories and / or excluded}
... the global and lasting effect principles "as-is" ... (claimed) ... a total domination ... (worldwide) ...
... ... the performance of any ... (member) ... the 'Cartel' was independent ... but ... well planned and coordinated. Even in Argentina. The sales figures of these companies were not ... resulting from the competition ... each company had lost its autonomy ... and had become a mere agent of a superior being ... ... and that was governed from London or New York ... { either eliminating all competition} ... ... the 'Cartel' possessed 82.10% of the extracted ... and 77.70% of refining capacity outside ... (USA) ... the undisputed monopoly of the oil industry ...
{This last figure on the ability refining gives us the importance of the distillery of La Plata, inaugurated by YPF, which at that time was the fourth in the world.
... ... most particularly the international oil market. Argentina was not an exception in that market ...
GROUP "AS-IS" IN ARGENTINA
The two ombudsmen from the 'Cartel' ... in ... Argentina ... in the beginning and before ... Achanacarry agreement, subsidiaries of the 'Standard' ... and 'Royal Dutch Shell', which then acted independently ... (as) 'West Indian Oil Co.' - 'WICO'-... (' Standard ') ... (and) ...' Cía. Energine the Jets' ... (Royal) ... most of the gasoline imported ... ... In 1929 installed directly 'Argentina Shell Mex Ltd.' and ... 'Shell Mex SA de Navigation' ... (the same directory 'Energine') ... by all ... transport operations (English) ... When ... Achanacarry ... (1928) ... (and) the principles of "As-is" in ... Argentina's formed companies ... (British and U.S.) ... to ... before ... had been devoted to hoarding of concessions and searches and the concentration of business ... ... (initially) independent ... ... the companies apparently retained its independence ...
PRE-CONCENTRATION
... 'Standard' operates ... through 'Lubricantina', 'Galena Signal 'and' overseas '... His areas of operations and concessions ... searches were ... Plaza Huincul (Neuquén) and Salta ... ... The British group was installed, with all privileges in Comodoro Rivadavia ... (through) to ...' Oil Transportation '' Cía. Argentina de Comodoro Rivadavia ',' Astra ',' Tiara 'and' Cía. General de Combustibles. "
'Astra' was merged ... with the 'Cía. East ', the' Cía Argentina de Comodoro Rivadavia "... with the 'Railroad Argentina Oil '...' Diadema Argentina 'covers ...' Brilliant ',' Pearl ',' Rubi 'and' Torch Argentina '...
... The prior existence of that base of support on which ... (is) supported ... the 'Cartel' ... is sin originates from Argentina's oil policy ... within that policy there was an interlude of the general national trend ... ... ... Mosconi this interlude ended, coincidentally, with the agreement Achanacarry ... ... (1928) ...
MARKET Petrolera Argentina - 1921/1935
... 1921/1935 ... prevailing position of YPF. in extraction - 74% to 26% of companies - 1926/1930 ... ... YPF. production rises 86.4% ... ... Mosconi started the price war and reduce the price of ... ($ 0.29) ... in 1924 ... ($ 0.30) ... 1930 ... local gasoline production was done at less cost than imported naphtha ... ...
but disappeared from the stage ... {e Hipólito Yrigoyen and the government of the UCR. Uriburu coup of '30 and by} ... and came ... with vigorously Achanacarry agreement ... in a market where there was a 'loose cannon' ... YPF.
The ... agreement required the parties to respect the situation that everyone had ... in 1928 ...
... the 'Cartel' was distributed in installments ... all the oil available to keep ... ( la) ... situation in each market so that an imbalance in ... Argentina ... (affected) ... other geographical areas ...
... position ... YPF. visibly deteriorated ... lost the pace of growth ... (catching) ... lost ... positions in the supply ...
This was the scene ... (oil) ... when he signed the Roca-Runciman Pact and ... agreed to a deal benevolent foreign capital ... again ... as in meat, transport, utilities, loans and currency ... (USA) and the English left arm to better secure Argentina's economy to their particular interests .
...
THE BEGINNING OF A PLAN
..., 1936 ... (minister) ... Agriculture ... of which depended ... YPF. ... Miguel Angel Carcano ... (that) ... as deputy had defended the Roca-Runciman Pact ... (for) ... "the senselessness of fighting with England our best client and friend "... (would prevail), in all its glory," the lenient treatment "to foreign capital ... (Decree) 82 162 ... (create) a Special Committee ... on the best scheme to ensure the effectiveness of ... oil wealth and progress of public organizations that exploit ... "in the competition ... (En) based on price increases and fight prejudice ... in ... (other companies) ... or jeopardize the progress of ... (YPF.) ... within the tolerable limits of commercial competition "... strange that ... cuss openly about benefits of competition and introduced the State ... as a market regulator controller and ...
That decree was a sequel to 'Draft Memorandum' and the Special Committee to negotiate a bridge ... ... (with) companies ... the 'Cartel' ... (the) "As-is."
- (Solving) ... late ... (on) ... or punishing tax reserves its reduction ... ... ... settlement ... facilitating foreign exploitation ...
- (recognition) ... under the pretext of private ownership of land concessions individuals included in the reserves, when the property does not, legally, no right ... (the) ground.
- omitted the passage of a clear and precise legislation that would protect ... (oil) ... ... to the national awards and searches hoarding and concentration ... in ... non-national firms.
- (delayed) ... (15) years to be a national company for the operation ... of Comodoro Rivadavia and Plaza Huincul and ... (allowing) their reserves are lower than they had in their capitals around the exterior.
- (acknowledge and agree) ... legal personality to corporations that were mere subsidiaries of foreign oil companies, with ... (10) ... years before the personality of YPF ...
- (consent) the uncontrolled exploitation ... (by) ... ... companies (foreign) ... handled on a whim that the import of petroleum and its derivatives.
... was ... the ... plan had been hatched to ... (effectuate) ... the 'lenient treatment' ... Roca-Runciman Pact.
DECREE N º 86639
...
... the report was of a generally amazing and ... was sustained by a rhetoric of circumstances ... but I had to abhor ... thirty ... years of advocacy of private enterprise ... reigns ... inconsistency of the decree n º 82162 and ... the same underhanded intention using the popular feeling to disguise the fraud antitrust ...
... Decree n º 86639 arbitrating as a solution to everything ... to prohibit the import or export ... and allow ... (YPF.), exclusively for ... (a ) ... future such activities in quarterly installments that the proposal would set the PE, ... the government attributed the unfair competition ... to import, when the five had declined and in fact the problem ... (originated from) ... increased individual withdrawals ... (by) ... positions of privilege that ... (they) ... aliens (the) ... country ... view of the danger of trustificación no action was taken ... no ... (if applicable) ... ... existing repressive laws (in addition) exclusive ... (of) ... YPF to handle the import ... ( meant only) ... ... YPF administration for its ability ... (refining) ... for their customers ... not ... (could) ... use ... the entire import ... only put it in their power to justify, officially, that ... (YPF) ... enter into negotiations with private companies ... (neatly) presented ... as trustificado foreign capital and was forced to use ... (to) ... ...
Argentine government ...
... despite the alarmist appearance of the decree, everything was like before ... private companies are not detracted from sales or customer ... nor ... oversaw ... (the) local mining and ... ... marketing to their own ... (if any) ... the need ... (agree) ... (distribution) ... imported oil.
...
British companies specialized in importing and trading of fuel oil received benevolent treatment which involved the only requirement to register in a register.
...
... all the subterfuge is exposed, the decree n º 86639 had only one purpose: to allow private companies to take the arm to 'uncontrolled' YPF., To ... a general agreement left on the carpet ... of " Draft Memorandum of Principles "... framing the activities of YPF in the convenience of the 'Cartel' ...
... diplomatic intervention is added ... the term of registration ... (importers) ... (Was) ... very critical time, the embassy ... (USA) managed to ... Foreign Affairs officially the extension of time ... (that) ... it was agreed to and consulted companies ... with no constraints to their cities and waited for instructions from Committee Central London ... why not register right away? Were they not Argentine corporations?. And then what diplomatic intervention ...?
THE PROVISIONAL AGREEMENT
... (8/29/1936) ... forty days ... (then) ... the Decree No. 86639, all companies ... operating in the country signed an agreement ... ..
... ... (and) ... the principles of "As-is" ... (show) ... a strange and remarkable similarity ... in the process of holding the 'uncontrolled' local ... deleted ... (completely) ... the ... competition, recognized and respected the clientele of each participant in ... (each) ... ... area, stabilizing sales quotas ... and thus ... the selling price; suppressed all sales promotion spending to freeze the salaries of resellers ; ... holding its customers to 'a Brand '..., was created a Court - completely extralegal - and above existing laws ... the likeness of the Tribunals or Committees "As-is" ... (of) ... London and New York ... a true Trust, with your letter ... constitution ... (and) ... in which YPF ... was in the minority.
GOVERNMENT CONFIRMS THE TRUST
Two days later ... ... (of) ... Interim Agreement, the Executive was approved by Decree n º 89379 ... (8/31/1936) ... ... adding to the instructions ... ... a definitive agreement ... ... equitable behold ... the market ...
This decree was inspired ... ... Achanacarry faithfully ... (but) ... instead of concrete a 'Cartel' particular ... now ... State ... ... a Trust sponsored by violating the laws of the country. This position blatant and accomplice, is a fact unprecedented in the history of Argentine law was to suppress your bone ... 'fruitless struggle' ... "which hurt the consumer" ... the struggle ... (characterized by competition = lower prices disappearing) ... not explain how the lower prices could harm ... (to) ... consumer ... was intended to consolidate those companies removing all competition trustificadas ... ... (to) encourage the equitable sharing of market and price support customer ... suppress their right to self ... {unified market, with no alternative options} ... (recognizing that ) ... the State ... (remember) the legal right to appoint agents ... is the same thing ... these companies recognize extraterritorial rights ... ...
THE FINAL AGREEMENT
... (09.29.1036 and 19.12.1936 are signed) ... these were approved Definitive Agreements by the Executive Power decree No. 99693 ... ... (02/15/1937).
... the positions of the signatories were ... (determined by) the sales ... (of) ... 1935 ... (the) ... sales quotas were reduced strictly on gasoline ...
... the measure was not be modified without the consent of the parties ... YPF could not increase their technical capacity development without the permission of the great ... technical expansion YPF - in times of Mosconi aggressive containing nationality - is subject ... even prior agreement members 'Cartel' ... {Eliminated competition and individual initiative ...} ...
REDUCTIONS TO RETAILERS
... important ... was the administration of subsidies which were assigned to resellers ...
... ... (1935) ... the bonus ... (was) ... of $ 0.035 per liter of gasoline ... ... was reduced to a penny and a half ... the difference ... (and) ... the concept ... (was a reduction between 1936 and 1940) ... $ 120,654,040, which is stole ... (a) resellers in the sales only items (gasoline) ... (Was "to organize the market")
THE IMPLEMENTATION OF THE PRICE FOB.
Decree No. 86639 ... (was a) ... YPF management of imports ... then the decree n º 89379 ordered ... the equitable distribution of the market ... (and) ... the need to sustain price ...
..., national extraction was done at less cost than the international price FOB the port of Houston ... (Texas) ... for domestic oil was not charged with phantom freight between the Persian Gulf the Caribbean. For ... (it) ... Mosconi, who worked with national values, could cut prices and compete with foreign firms was supplied ... the international import fob ...
... in 1936 (YPF) ... to agree with the 'Cartel' ... Independence lost ... instead of price (cost) national opted by the international price (with ghosts costs) ... on international FOB value ... are adding a phantom freight, plus freight from Houston to the Rio de la Plata ...
{
and added an international freight cost already in the country to the place of consumption and but there was no national price by region}
... Since then all decrees that fixed prices were calculated on the international price.
... ... the introduction of the FOB price ... as the standard for prices ... (internal) ... contributed a profit on the domestic mining companies (through various maneuvers) established the price YPF, as well as resellers are limit their profits.
... ... (to implement the FOB value) ... was the incidence ... (about) ... costs industry and the cost of living ... (locked) ... industrial development and decreased their ability to compete with imported goods ... (USA) and the Northern industry was driven by fuel itself and the 'Draft Memorandum '... (set) ... states that the principles "As-is" had no application to ... (USA) ...
... in (U.S.) with the actual fuel cost ... national governing the policy that was implemented in Argentina ... (Yrigoyen y) ... ...
Mosconi
PARALLEL INTERNATIONAL POSTER
... ... in 1932 ... Argentina was 'uncontrolled' ... (proper to apply) ... the ... 'Heads Distribution Agreement for' ... (Article 1 º): "Principles" as-is "must paramount in all countries, except for ... (USA) "... was ... the starting point for our country to hold 'Cartel' ... ...
Finally the dome of this whole system was Oil Arbitral Tribunal with legal and extralegal authority ... any commercial and criminal litigation as drew from his strong specific and ... (was) ... an incompetent jurisdiction and unconstitutional ... this resource could sustain a system accomplice trustificado perfectly in every detail, even though there antitrust laws in the country ... was a direct result ... of lenient treatment ... Roca-Runciman Pact ...
COURT ARGENTINE OIL "?
... (was) ... created to approve these agreements the Executive Decree No. 99693 on their functions were purely and simply the application of principles you "as-is."
...
A MOSCONI ROB THE OIL
... (some people have argued that) ... the political conventions ... was ... (it) ... only to assure the progress and survival of ... (YPF). Nothing is more fallacious ... Conventions achieved ... ... capitalize on the advantages gained unfair competition in a ... ... act as trust despite the antitrust laws ... profoundly alter the sense of nationalism ... (of) ... Mosconi ... by (lo) ... completely opposite ... and ... stop ... a petroleum regime that threatened and Mexico ... eradication detonate foreign companies ... ... getting the secure stability and permanence in the future. In the future, who survives.
... ... ... eight years in the administration ... (of) ... Mosconi was able to stop delivery and total ... 250% incrementaren fiscal activity, exceeding the preponderance ... ... (until then) ... they had ... in English capital sales and ... (USA) ... (with the price war is) ... asserts the 'national cost' to the international price ... ...
... After the fall of the Hipólito Yrigoyen Republic was involved clouds. Capitulated to the Roca-Runciman Pact gave its agriculture and its currency and ... well ... oil.
... The 'Cartel' ... moved their FOB price to our domestic market, disappeared ... the national cost and prices are governed by import prices.
... ... then someone invented the need to expedite the processing of oil extraction ... since 1955 ... the heyday of the era of the "Contract" ... it was a repetition of the same tactics ... the tree obscures the forest. Today and always the problem of self-sufficiency is that the basement ... it is non-transferable property of the nation ... the bottom line is to meet the needs of the homeowner and not-national capital ... no ... just talking about expropriation expiry of the concessions that have more than ten years agreed, in technically that term got its revenue and capital facilities are paid off ... no need to 'scan contract' that ... only serve as a smokescreen to make people forget ... (which) ... behind them ... (are) ... firms the 'Cartel' ... comfortably settled in our land ...
A CONFESSION FROM
The report of the 'Federal Trade Commission' ...: "The application by the 'Standard' ... and 'Shell Mex" principles "as-is" in Argentina was complicated by the existence of ... (YPF) ... until 1936 ... YPF ... (up) ... I inspections on profits on the sale of gasoline ... the group "As-is" did in the market ... heavy products, until 1937 the share s of the established sales ... the most important international companies according to the principles of "As-is" and on the basis of the shares they had in sales and 'base period' of 1928.
... (01/01/1936) ... the distribution of shares was subject to a general review
(DIMENSIONS TO PARAGRAPH)
The report ... (said) ... the obstacle that ... (it was ) ... ... YPF (recognizes) that since its signing in 1928 the principles Achanacarry "As-is" application in the country had to split the sales ... between the two big companies ... (signatories of the agreement) ... to 1937, the market had ... 'uncontrolled' YPF ... ... (this) was losing out to the group "As-is" in sales of gasoline, but remained substantial profits ... in the market for heavy products.
... (01/01/1936) ... the 'Cartel' made an adjustment of fees ... ... Executive Power decree No. 82162 appointed the Special Committee ... the signing of agreements in 1936 meant ... the incorporation of YPF to "As -is "...
SOURCE
Juan Carlos Vedoya
Everything is History
No. 84, May 1974
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