893.6363 Manchuria/253: Telegram

The Ambassador in China (Johnson) to the Secretary of State

64. Standard-Vacuum Oil Company has requested Consular cooperation in obtaining evidence to support diplomatic claim for losses sustained in consequence of the operation of the Manchukuo Oil Monopoly. Company states that the American and British Embassies at Tokyo have urged the foreign oil companies to endeavor to obtain a definite statement of the intention of the Manchukuo government towards the payment of the claims presented on May 10 but expresses doubt whether it will be possible for the companies to obtain a written statement from the government on this point. Company feels that if a Consular officer is present when oral statements are made to the company’s representative it will provide the evidence necessary [for a] diplomatic claim.

I have informed Consul General at Mukden that he would appear to be warranted in his discretion in addressing to Manchukuo officials oral and informal inquiries regarding their attitude or decision in respect to the claim of the American oil companies, and that it would also lie in his discretion whether representatives of the American oil companies accompanied him at such interviews. I have informed Mukden that, although it is not clear how anything would be gained by such an inquiry at the present time since the obvious reply of the Manchukuo authorities would be that steps have already been taken to examine into the claims, nevertheless, if the Standard-Vacuum Oil Company so desires and it can be arranged it might be useful if the Consul General or a member of his staff could be present at the discussions with the Manchukuo authorities.

Johnson