861b.6363/102
The Secretary of State to the Sinclair Exploration Company
Sirs: The Department has received the letter of October 15 in which, in further reference to your arrangements with the so-called Soviet Government of Russia for the exploration and development of oil resources in Northern (Russian) Sakhalin, you state that your engineers were prevented by the Japanese authorities in occupation of that territory from conducting any explorations; and that while preventing the operations contemplated by your company, the Japanese authorities have permitted their own nationals to carry on operations which have resulted in a commercial production of oil. You ask that this Department request the Japanese authorities to issue such instructions as would obviate further interference with the exploration of Northern Sakhalin by employees of your company.
The question presented by this request was considered by the Department when, under date of February 7, 1923,7 you advised it of the conclusion of a contract made originally with the so-called Far Eastern Republic and thereafter confirmed by the so-called Soviet Government of Russia, and requested this Department to approach the Japanese Government with a view to facilitating operations under the contract in question. You will recall that the Department, in a reply to you dated March 17, 1923,8 expressed its regret that it did not feel in a position to present the matter to the Japanese Government in view of the circumstances; and the considerations the Department then pointed out still hold good.
I am [etc.]