693.113 (Manchuria) Petroleum/44: Telegram
The Secretary of State to the Minister in China (Johnson)
85. Your 126, March 17, 3 p.m.
1. The Department under date March 22 was informed by our Embassy at London that, according to the British Foreign Office, the British Minister in China has suggested to the British Ambassador at Tokyo the desirability of concerting action with his American colleague in the matter of making representations to the Japanese Government, and that the Foreign Office is seeking the views of the appropriate department of the Board of Trade on technical aspects of the case.
2. The Department is instructing the Embassy at London as follows:
“You may inform the Foreign Office that we consider it both unnecessary and inadvisable to rest any representations which this Government may decide to make to the Japanese Government on arguments or considerations of a technical nature. The action of the Manchukuo customs in classifying as kerosene illuminating oil imported by an American firm which was of substantially similar quality to oil imported by Japanese firms and classified under a lower rate of duty evidences beyond any reasonable doubt that the test used by the Manchukuo customs lends itself to discrimination against non-Japanese oils. Additional evidence of discrimination would appear to be found in the fact that, following the establishment of the discriminating [Page 706] practices of the customs authorities, there has been an unusually large increase in the importation of Japanese light oils and a corresponding decrease in the importation and sale of American and British kerosene.
We understand that the interested oil companies have recommended to their head offices, for submission to the Commissioner of Customs at Dairen and the authorities at Hsinching, a new system of classification which may possibly solve the difficulty, and it would seem desirable to await the result of efforts toward that end. However, if the proposal of the oil companies is not accepted by the local authorities, we would be glad to receive (as suggested in our telegram No. 92, March 8, 2 p.m.) an indication of the views of the British Government with regard to the desirability of similar representations being made simultaneously to the Japanese Government by the American and British Ambassadors at Tokyo.”
3. Please keep the Department promptly informed of the decision of the oil companies and of any clarification in the British position that you may be able to learn of through your British colleague.
4. If you have not already done so, please keep Tokyo fully informed, especially with regard to your 106, March 2, 2 p.m., Department’s 66, March 14, 6 p.m., your 126, March 17, 3 p.m. and this telegram.