Office of the Historian

894.6363/100: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

Tokyo, October 22, 1934—5 p.m.
[Received October 22—10:25 a.m.]

232. Embassy’s 222, October 10, noon, and previous regarding the oil situation in Japan and Manchuria.

1.
Referring to pages 3 and 4 of the Embassy’s despatch No. 1001, October 5,42 which should now be in the hands of the Department, the Department of Commerce and Industry has refused to grant a postponement of the time for filing import and storage plans and has demanded submission of the plans without delay. The foreign oil companies do not see their way to comply with the demand at present.
2.
According to Peiping’s telegram No. 478, October 21, 6 p.m., plans for an oil monopoly in Manchuria are progressing.
3.
It therefore appears that the oil situation in Japan and Manchuria is rapidly approaching a crisis.
4.
The Petroleum Committee set up in Japan by the petroleum industry law is scheduled to meet in late October or early November to consider various phases of the oil industry.
5.
When the failure of the foreign oil companies to store 6 months’ stocks of oil is brought before the Petroleum Committee, it is feared that the committee may take some hasty and drastic action in regard to the foreign oil companies which would have to be upheld in the future because repeal would cause too great loss of face.
6.
It therefore might be advisable that any steps which the American Government contemplates taking in this connection should be decided upon before the meeting of the Petroleum Committee.

Repeated to Peiping.

Grew
  1. Pages under reference not printed.↩