894.6363/77: Telegram

The Ambassador in Great Britain (Bingham) to the Secretary of State

529. Department’s 358, September 11, 8 p.m. Acting Chief of Far Eastern Department today referred to Embassy’s conversation with Chief of that Department, now on leave (reported in Embassy’s telegram 519, September 12, 2 p.m.) and made the following remarks.

1. About July 23 British Ambassador at Tokyo on instructions from the Foreign Office informally advised Japanese Foreign Office in a friendly conversation that the Shell Company had complained of the Japanese petroleum law on the ground of compulsory tank construction and price-fixing, emphasizing an early date, July 31st and on which the law was to come into effect. The Ambassador said that the British Government considered that as presented the company’s complaints were justified and he would be glad if the appropriate Japanese Ministry would hear the company. This was at once agreed to and it is understood that the Under Secretary of Commerce had held conversations with Shell.

2. Though the Foreign Office had not approached the Dutch they understood that “the Dutch Government are willing to authorize their Minister at Tokyo to make a similar démarche on behalf of Dutch oil interests.”

3. The Foreign Office did not plan to move again in the matter at present, awaiting a possible answer from the Japanese Government or a request for further action from Shell.

The Foreign Office is of the opinion that in view of our similar interests the Department of State might desire to instruct the American Ambassador at Tokyo to make a similar démarche to show the United States Government’s concern.

Bingham