800.503193 Manchuria/6
The Ambassador in Japan (Grew) to the Secretary of State
[Received July 23.]
Sir: I have the honor to refer to the various despatches and telegrams to the Department from the Legation at Peiping and the Consulate General at Mukden, regarding the reported intention of the “Manchukuo” Government to establish an oil monopoly in that country, [Page 713] and to enclose herewith a copy of an announcement2 made by the Legation of “Manchukuo” at Tokyo under date of June 27, 1934, as distributed by the Rengo news agency.
The announcement, it will be noted, states that the “Manchukuo” Government has “decided to devise special measures in regard to enterprises which have important bearings on national defense, those of a public nature and for the public benefit, and also those which constitute a basis for all industries such as transportation, communications, iron, steel, light metals, gold, coal, petroleum, automobile, ammonium sulphate, soda and lumber.” The announcement does not state what the “special measures” are to be, but it can fairly safely be assumed that they will consist of enactments organizing semi-official joint-stock companies which will be given more or less monopolistic rights as regards certain industries within the country. Such companies have already been organized in the communications, petroleum and automobile industries, with “Manchukuo” and Japanese capital only participating.
If evidence can be adduced indicating that Japanese capital is permitted to participate in such monopolistic industries while other non-“Manchukuo” capital is excluded, it is probable that grounds would exist for a protest to the Japanese Government on the ground of infringement of Article III of the Nine-Power Treaty. The Embassy is now conducting investigations along the lines indicated.
Respectfully yours,
- Not printed.↩