Office of the Historian

893.6363 Manchuria/55: Telegram

The Chargé in China (Gauss) to the Secretary of State

Peiping, October 24, 1934—noon.
[Received 2:55 p.m.]

483. Legation’s 478, October 21, 6 p.m. Supplementing his October 21, 10 a.m., Chase says that representatives of the oil company made no reply to the statement; that they feel authorities are bluffing and that strong representations would delay indefinitely creation of the monopoly. Chase feels that all foreign trade in Manchuria is threatened and that emphatic diplomatic representations and wide publicity are needed. He suggests that he be authorized to make strong protest at Hsinking.

2.
Although the Legation does not believe that representations at Hsinking would be of much use it is of the opinion that following arrival in Mukden Ballantine43 might appropriately be authorized to proceed to Hsinking for the purpose of making contacts and discussing informally this and other pending matters and expressing the concern of the American Government at these measures which appear calculated to drive American oil companies out of Manchuria.
3.
As the relationships existing between persons involved in the creation of the monopoly would appear to cause some doubt that it is bona fide for national defense as alleged (see Legation’s 387, August 28, 1 p.m.) the Legation is inclined to believe that in addition to any representations which the Department may deem appropriate the interests of the oil companies might be served by giving wide publicity to this open breach by “Manchukuo” of its open door, equal opportunity, respect for treaty, customs and obligations. Such publicity might support and strengthen the liberal elements in Japan opposed to dominance by the military.

Repeated to Tokyo.

Gauss
  1. Joseph W. Ballantine, Consul General at Canton, assigned to Mukden, September 14.↩