893.6363 Manchuria/194
Oral Statements by the American Ambassador in Japan (Grew) to the Japanese Minister for Foreign Affairs (Hirota)
[Tokyo, April 16, 1935.]
- 1.
- The creation of the oil monopoly in Manchuria, and the part played therein by Japanese nationals and interests, will have a deplorable effect upon public opinion in the United States, which regards the monopoly and Japanese participation therein as clear breaches of treaty obligations.
- 2.
- The American companies selling oil in Manchuria have been engaged in good faith in the oil business for many years and have built up their business with the expenditure of much thought, energy and money. During all of this time they have maintained supplies sufficient to carry on the business uninterruptedly, and there is no record, so far as the Embassy is aware, of their having engaged in practices that were unfair to their clients or detrimental in any way to the best interests of Manchuria. The destruction, through the operation of the monopoly, of this business and the good will so carefully built up over a long period of years, and the throwing of this business in large part into Japanese hands, will appear to the American public to be a most inequitable proceeding.
- 3.
- The Japanese Government disclaims responsibility for measures taken by the authorities in Manchuria in establishing the monopoly on the ground that they are acts of a state recognized by Japan as sovereign and independent. Nevertheless the peculiar relations and undoubted influence of Japan with those authorities have been fully demonstrated in other recent issues. This inconsistency is certain to affect adversely American opinion of the good faith and sincerity of the Japanese contentions in the present issue.
- 4.
- The American oil interests are being deprived of a business which they have been lawfully conducting for many years, on the ground, among others, of national defense, for which the Japanese Government insists it has responsibility. If the principle of national defense is involved, therefore, it would seem that Japan cannot dissociate itself from the monopoly project. On the other hand, if the monopoly project is purely a commercial question, or is concerned solely with economic policy, it would appear to be eminently fitting for Japan to associate itself with other nations to assist in maintaining the principle of equality of commercial opportunity in Manchuria.