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.