894.6363/116: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received November 8—9:50 a.m.]
249. Local manager Standard-Vacuum Company requests Embassy to send the following message in code to the Department for transmission to their principals in New York. I am informed by the British Embassy that they have sent a similar message in code to London for the Rising Sun Company.
[Page 756]“Parker, Standard-Vacuum Oil Company, New York.
Referring our cable November 7th, the following is the opinion of the local representative British Oil Company and ourselves. We have been in constant touch with the American and British Embassies and the Dutch Legation.
- 1st.
- If it is decided to notify Japanese Government that foreign oil companies refuse to comply with stock-holding regulations then in view of Japan’s recent uncompromising and unsatisfactory replies to Government representation, it is considered that apparently the only chance to influence cancellation or modification of these regulations which can be done without Diet action lies in the willingness of the American, British and Dutch Governments to announce simultaneously, and at the time of notification of noncompliance by the foreign oil companies, that if Japan persists in these unfair regulations which force foreign concerns to help finance a national defense scheme, the foregoing Governments will be constrained to adopt practical defensive measures to guard against unwarranted transfer of national petroleum resources.
- 2d.
- Japan is almost entirely depending upon the United States and Dutch East Indies for petroleum and if she accomplishes her present objectives in Japan and Manchuria, which depend upon refining crude oil which must be imported, and the export supply of which we assume could at least be subjected to control and the regulations as restrictive and burdensome as those imposed by the Japanese control law, it would then seem likely that Japan will feel free to proceed without fear of opposition to attempt by reexport of refined products and other means to dominate the petroleum situation in China as well.
- 3d.
- We should decline for the present to submit information requested by Hsinking (see our cable October 25th) also continue to decline to quote on crude oil because to do so would appear to be tantamount to acquiescing in proposed monopoly and would be inconsistent with protests made by Government.
In view foregoing and as issues involved are more than purely commercial in both Japan and Manchuria we and friends hope that the Governments concerned can be persuaded by you and London to support plan as per first paragraph. Friends are cabling London through British Embassy in similar sense. Goold.”
Please inform Embassy if delivered.