894.6363/119
Memorandum by the Chief of the Division of Far Eastern Affairs (Hornbeck) of a Conversation With Mr. P. W. Parker of the Standard-Vacuum Oil Company
Mr. Parker called me on the telephone from New York. He inquired whether there was anything new since the telephone conversation between Mr. Teagle and me of yesterday. I said that there was nothing new. Mr. Parker said that this would presumably be his last inquiry before starting for Tokyo; he would like to know whether there is any possibility that the American Government would be disposed to do anything in the way of placing an embargo or restriction upon export of petroleum. I said that we had gone over that matter pretty thoroughly with Mr. Teagle, and that, on the last occasion when the matter had been discussed between Mr. Teagle and me, I had said to Mr. Teagle, unofficially and as a matter of personal opinion, that, upon the basis of my knowledge of the general thought of the Administration, but without this question having been put definitely and been subjected to a decision, it was my impression that action in that direction could not be expected; and I had suggested that if the American companies want a decision with regard to the point they should themselves put the question up to the highest authorities. I reminded Mr. Parker that it has been indicated repeatedly in our statements during the conversations on this subject that the American Government awaits an initiative by the British Government and we definitely do not intend to “get out in front” in this connection. Mr. Parker said that he understood this. He said that his representative in Tokyo seemed still to think that we might lead off with restrictions. I said that our Ambassador in Tokyo has been informed of our attitude and I have not the slightest doubt but that he has informed the Standard-Vacuum representative there.
I then went on to say that, from the fact that the Dutch Shell people are sending representatives to Tokyo, just as Mr. Parker is going there on behalf of Standard-Vacuum, we may assume that the British Government has given them its blessing in that connection; and that presumably the Ambassadors of all three countries at Tokyo will assist these representatives of the companies toward making contacts and going into conference with the Japanese authorities. I did not see that more could be expected of us at the present moment. Mr. Parker [Page 758] said that he felt that we had been and were being very helpful. He wondered whether I had any other suggestions. I said that I had one: speaking unofficially and informally and personally, I felt that, confronted by a problem such as Mr. Parker will be dealing with on his trip, those who are handling the problem should seriously consider indications of trends in the field of foreign trade and merchandising abroad; that, more and more, governments are going to be confronted with the question of employment for their own people; that in countries circumstanced as are Japan and China—to say nothing of others—there will presumably be more and more a tendency to try to substitute domestic labor and employment for foreign labor and imported services; that, to limit the thought to Japan, the Japanese would import raw materials but as far as possible do their own processing and their own merchandising; hence, foreign companies doing business in Japan would need to think seriously before adding to their investments and expanding their agencies of distribution within the country. No one could say that there might not come about changes in trend, both international and national,—but the trends of the moment must be considered in connection with any commitments for the immediate future. Mr. Parker said that he realized this; that his company had not made new investments in Japan for sometime back; and that he supposed that, more and more, the Japanese would see to it that, where their own people could compete with foreigners doing business in Japan, little if any profit would be permitted to accrue to the latter. I suggested that this part of the conversation be regarded as strictly entre nous. Mr. Parker said: “Of course.” Mr. Parker said he appreciated all the trouble which we had taken in connection with this matter. I said that it was not trouble; that it was our business; that what concerns the rights and interests of American business concerns us; and that we appreciate the disposition to consult us and “play the game with” us which his company has shown. I wished him an enjoyable and successful trip. And the conversation there ended.