894.6363/137: Telegram
The Secretary of State to the Ambassador in Great Britain (Bingham)
422. Your 603, November 27, 7 p.m. Department suggests that, provided you perceive no objection, Millard and Dooman see Orde and, referring to their conversation of November 27, talk with him on following lines:
1. Department hopes that in the petroleum matters, both in Manchuria and in Japan, the American and British Governments may be able as far as possible to proceed on parallel lines and present common front. We perceive no difference in the attitude and objectives of the two Governments. In view of the facts that British and Dutch oil interests are involved as well as American, that three Governments are concerned, that Deterding took the initiative here toward concerted action, that representatives of the several petroleum interests have been [in?] conference in London, and that consultation between them and the British Government and between the British and the Netherland Governments has been and is possible at short range, Department had been hoping for and expecting suggestions from the British Government with regard to possible course of action.
[Page 775]Department still feels that it would be advantageous for British Foreign Office to be coordinator and central clearing point in this matter.
2. Department has been informed by British Ambassador here that the Foreign Office’s recent request through him for information from Department was prompted by an intimation given to the press by the Japanese Ambassador here that Japan might mediate between British and American petroleum interests. So far as the Department is concerned, there was and is no basis in fact for such an intimation. We believe that the British Ambassador has already so informed the Foreign Office.
3. Department concurs in the thought of the British Government favoring concerted action by British and American petroleum interests. Department has consistently expressed this view to the American interests concerned. We have suggested to them cooperation among all American petroleum interests. We do not believe that short of such cooperation or of definite restrictive action on the part of the American Government effective restriction of petroleum exports from the United States to Japan and Manchuria could be achieved. This Government does not for the present feel moved to proceed in the direction of such action and it does not look as though the oil companies adversely affected are in position to take or to cause the oil industry as a whole to take such cooperative action as might be effective. Whether the situation among the petroleum interests will develop in that direction is a question on which we, at least, venture no prediction.
4. It is our understanding that, representatives of the various petroleum interests directly involved with Japan having proceeded to the Far East, the British and American companies desire that their respective Governments pave the way for discussion by those representatives with appropriate officials of the Japanese Government. May it be understood that the British Ambassador and Netherland Minister as well as the American Ambassador in Tokyo will be instructed by their Governments to take appropriate action toward that end? We assume that it is the view of the British Government that no action other than such, that is, no new démarche should be made to the Japanese Government until the representatives of the petroleum companies shall thus have had opportunity to confer with appropriate officials of the Japanese Government.
5. Department feels that there should be frank and full exchange of views between the British, the Netherland and the American Governments in relation to all phases of this matter and all steps envisaged or contemplated; that there should be the best possible working understanding between and among the Governments and the oil interests concerned; and that it should be realized and be constantly kept in [Page 776] mind by all of the above that there is involved a definite and clear-cut community of interest which calls for and warrants concerted action toward the objective of safeguarding actual legitimate investments and future commercial opportunities. Department is gratified that the British Government appears to share this feeling.
6. We feel that all of the above should be told orally to Orde. Please report by telegram.