Foreign Relations of the United States Diplomatic Papers, 1934, The Far East, Volume III

894.6363/146: Telegram

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

Washington, December 10, 1934—8 p.m.

201. Your 271, December 8, 9 a.m.

1. Dooman is at London assisting Davis.⁷⁶ Department had given no instructions to any member of the naval delegation with regard to any phase of the petroleum problems. On November 27 Doornail telegraphed informally from London that he and an officer of the Embassy called upon invitation, at the British Foreign Office and there discussed informally the oil situations in Japan and in Manchuria, Dooman stating at the outset that he had no authority to speak officially. Foreign Office representative stated that the British Government would regard with favor concerted action by the British and American oil concerns on the following conditions: (a) any measure that may be agreed upon should be water-tight or at any rate effective; (b) no formal action shall be required of the British Government; and (c) the situations in Japan and in Manchuria are to be dealt with as two parts of the same problem (in other words, any measure to be taken shall be applied to both areas or not at all). Foreign Office representative seemed doubtful of the wisdom of making in the present circumstances a further official démarche at Tokyo. He said that the British Government and oil interests had not conclusively decided that any measure of the foregoing character should be applied as soon as agreement thereon could be reached, but that they believed that it would be advantageous to give the oil interests freedom to take action. He thought that if any effective private measure could be devised by the oil interests of the three countries, a real and effective basis would be laid for further official representations. Dooman’s telegram does not indicate that he “concurred in” anything.

2. Under date December 5 the Department replied to the London Embassy suggesting that Dooman and an officer of the Embassy see the Foreign Office official and give him orally a statement in regard to our general position, pointing out that it is our hope that the American and British Governments may be able as far as possible to proceed on parallel lines and present a common front; that we perceive no difference in the attitude and objectives of the two Governments; that representatives of the several petroleum interests have been in conference in London where consultation between them and British Government and between British and Netherland Governments has been and is possible at close range; that, for reasons given, Department has been hoping for and expecting suggestions from British Government with regard to possible course of action; that Department still feels that it would be advantageous for British Foreign Office to be coordinator and central clearing point in this matter; that the Department concurs in the thought of the British Government favoring concerted action by British and American petroleum interests; that the Department has consistently expressed this view to the American interests concerned, suggesting to them cooperation also among all American petroleum interests; that we do not believe that short of such cooperation, or of action along lines such as are referred to in paragraph 3 of your telegram No. 238 of October 29, 6 p.m., in the direction of which action we do not for the present feel moved to proceed, effective measures of control could be attained; that in view of our understanding that representatives of the petroleum interests, having proceeded to the Far East, desire that their governments pave the way for discussion by them with appropriate officials of the Japanese Government, we inquire might it be understood that the various chiefs of mission would be instructed by their respective governments to take appropriate action toward that end; that we assumed that the British Government thought that no new démarche should be made to the Japanese Government until representatives of the companies had thus had opportunity to confer with the Japanese officials; that we felt there should be frank and full exchange of views in relation to all phases of the matter and steps envisaged or contemplated, et cetera, and that there should be realized constantly that there is involved a clear-cut community of interest which warrants concerted action toward safeguarding actual legitimate investments and future commercial opportunities; that we were gratified that the British Government appeared to share this feeling; and that we felt that all of the above should be told orally to British Foreign Office.

3. American Embassy [at] London reports that on December 7, after reading to officials of Foreign Office Department’s telegram summarized above, Foreign Office official stated that British oil interests had requested that British Government give diplomatic support to representations of the local managers of the affected British companies; that Foreign Office had directed Clive to make, after consultation with you, further informal representations; that representatives of British oil interests will proceed to Japan for conference with Japanese officials only if Japanese response to representations of Clive and local manager is sufficiently favorable to warrant such action; that so far as the Netherland Government is concerned, that Government would be prepared to follow the lead of the British Government; that, with regard to the Department’s suggestion that Foreign Office act as clearing house, it might be advantageous for American and British Governments to maintain contact through their respective representatives in Tokyo.

4. Before coming to a conclusion in regard to the British project outlined in your telegram 271 of December 8, Department intends to make known to British Foreign Office our doubt as to the wisdom of making at this stage a démarche along the line of Foreign Office’s instruction to Clive; our opinion that, with the exception of an informal and oral paving of the way, no further official démarche should be made until senior representatives of the various oil companies shall have had an opportunity to confer with officials of the Japanese Government; and that, with a view to facilitating and expediting the exchange of views between and among the British, Netherland and American Governments and of safeguarding confidential communication, the Department continues of the opinion that in this matter the British Foreign Office is the logical place for central clearing point.

5. Department will, as soon as practicable, communicate with you further. In the meantime, if you are not in agreement with the Department’s views, as indicated above, please submit your recommendations by telegram. If you feel that British plan should be followed, please submit for Department’s consideration the text or a summary of such aide-mémoire as you would wish to present to the Japanese Government.

Phillips

76. Norman H. Davis, chairman of the American delegation to the London preliminary naval conversations.