Foreign Relations of the United States Diplomatic Papers, 1934, The Far East, Volume III

893.6363 Manchuria/50

Memorandum by the Counselor of Embassy in Japan (Neville) of a Conversation With the Japanese Vice Minister for Foreign Affairs (Shigemitsu) on September 5, 1934³⁰

September 5, 1934

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Mr. Shigemitsu then said to me that the American Government had sent strong representations about the oil question in Manchuria. I told him that I was not in a position to talk about it, as I had just come back. He said that the legal questions brought up in the note were extremely interesting. I asked him what the purpose of the Manchurian action could be—oil revenue or oil control. He said that he could not answer that question, but he suggested that the oil companies might find it to their advantage to talk to the authorities in Shinkyo (Changchun). He said that the Japanese Government sometimes had a good deal of difficulty convincing the “Manchukuo” people of the desirability of certain courses of action, but was always willing to do what it could to facilitate dealings with foreign countries. I made no comment on this statement. He then added that discussions with the “Manchukuo” authorities by the oil companies would raise no question of recognition, and might do some good. He then said that he hoped the oil companies would keep in close touch with the “Shokosho” in Tokyo in regard to the enforcement of the new law in Japan. He said that the Foreign Office wished to settle the matter smoothly and without injustice, but that practically every country on earth was putting some sort of oil control into effect; that the Japanese Government desired an orderly marketing of oil products; that the situation in the United States was different in that America had a large supply of oil. I said that conditions were different in that respect, but that the oil companies had been in business out here for many years; that they had, so far as I knew, conducted their business in good faith and had always been anxious to supply the petroleum needs of the country and to conform in every way with the law. He said that this was true and that he hoped some adjustment could be reached.

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After a short conversation on purely personal topics I withdrew.

E[dwin] L. N[eville]

30. Copy transmitted to the Department by the Ambassador in Japan in his despatch No. 956, September 6, 1934; received September 24. Omissions are indicated in the copy as transmitted.