893.6363 Manchuria/97: Telegram
The Chargé in China (Gauss) to the Secretary of State
[Received 11:50 a.m.]
545. Legation’s 537, November 24, 11 a.m.69 Following from Consul General [at] Mukden:
“November 28, 7 p.m. Representatives of American oil companies have reported to me the results of their interview at Hsinking yesterday with monopoly authorities.
[Page 772]They were told that the government was determined to go ahead with its plans and that protests on the basis of the principle of the open door were futile; that the authorities had invited the company representatives only for the purpose of ascertaining whether they proposed to cooperate with the monopoly by supplying by December 10th the information requested on the volume of their business et cetera, and by making tenders for supplies, in which case they would be granted quotas; and that otherwise the monopoly would arrange for other sources of supply. It was stated that in case of cooperation the monopoly would become effective in February, otherwise on some later date; that it would operate in Manchuria including the South Manchuria Railway zone but not in the Kwantung leased territory, and that under the plan the foreign oil companies would be entirely eliminated from direct sales to consumers either wholesale or retail.
The company representatives did not commit themselves beyond asking questions and promising to report to their superiors.
The interview has served to clarify the attitude of the authorities and to convince the local representatives of the oil companies that they cannot afford to compromise since they are offered nothing for cooperating beyond quotas of crude and refined imports, which they might be able to supply anyway in the absence of adequate alternative sources.”
- Not printed.↩