893.6363 Manchuria/66: Telegram

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

245. Department’s 187, November 5, 2 p.m.,52 Manchuria oil monopoly. Summary of Japanese reply.

(a)
Plans of “Manchukuo” government to regulate the oil industry are projects of that government and are not within the knowledge or concern of Japanese Government.
(b)
The Japanese Government appreciated the adoption of the open door principle by “Manchukuo”. In case of difference of opinion between “Manchukuo” and third government regarding its application, while the Japanese Government would welcome a reconciliation of views, it cannot be responsible for the industrial policy of “Manchukuo”, which claims to have the right to control important industries, but with no intention of subjecting foreigners in Manchuria to discriminatory treatment.
(c)
The Manchuria Oil Company is given no monopolistic privileges and the Japanese Government can find no reason to forbid Japanese investments in the company.
(d)
“Manchukuo” government does not intend to purchase all the oil which it will sell from the Manchuria Oil Company and the interests of foreign concerns will be considered in the purchases of petroleum.

Full text53 sent by mail to Shanghai for transmission by naval radio.

Repeated to Peiping.

Grew
  1. Not printed.
  2. For text of memorandum dated November 5, 1934, see Foreign Relations, Japan, 1931–1941, vol. i, p. 140. The Ambassador in his telegram No. 246, November 7, 10 a.m. (893.6363 Manchuria/67), reported: “The British Embassy has received a similar memorandum.”