894.6363/76: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received September 19—1:48 a.m.]
205. My 199 [190], August 24, 5 p.m.,33 and previous telegrams concerning the Japanese petroleum control law. The Netherlands Minister yesterday made “friendly representations” to the Foreign Office on instructions from his Government and left with the Minister for Foreign Affairs an aide-mémoire pointing out that the Netherlands oil interests, which act through the Rising Sun Oil Company in Japan, are placed in a difficult position in Japan because of:
- (1)
- The 6 months’ stock-holding requirements, which involve a large outlay of capital.
- (2)
- The annual licensing system, which gives no security of business beyond 1 year.
- (3)
- The encouragement of oil refining in Japan, which is detrimental to the refining industry in the Netherlands Indies. The Netherlands oil interests are nevertheless “willing to consider the erection of a refining plant in Japan but so far they have not been able to ascertain if a license to refine oil in Japan will be granted them and [Page 732] if so whether they will enjoy the same treatment as the Japanese companies.”
- (4)
- The price-fixing regulations, which require the oil companies to sell their stocks and import quotas at prices fixed by the Government.
The aide-mémoire then states the Netherlands Legation therefore requests the Japanese Government “to consider means to remedy the detrimental causes which render it extremely difficult for the Netherlands oil interests to reach a decision which is bound to involve great expenditure for which at present no sufficient security is given.”
Full text of the aide-mémoire will be sent by mail.34