893.6363 Manchuria/59: Telegram
The Chargé in China (Gauss) to the Secretary of State
[Received October 30—11:30 a.m.]
496. Legation’s 483, October 24, noon. In a despatch of October 23rd to Tokyo49 the Consul at Dairen expresses the belief that the officials at Hsinking are not sufficiently sure of their ground to be heedless of any of the proposals for modification of monopoly scheme; that it is imperative that the foreign oil companies formulate a mutually agreeable counterproposal, and that they do not as previously set forth be content only with protesting directly and through their diplomatic representatives on the basis of violation of the open door and equal opportunity. That some form of control over the oil business in Manchuria will be established in the near future seems to him a foregone conclusion, and he feels that the amount of business which the foreign oil companies will be able to retain will depend largely on the unity, determination and wisdom with which they meet the situation. He expresses belief in the possibility that insistence on retaining the privilege of marketing refined oil in Manchuria, accompanied by agreement to submit to a control and quota system, would, when backed by diplomatic protests, be effective.
Tokyo informed that Dairen despatch has been summarized to Department.
- Not printed.↩