894.6363/236: Telegram

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

253. Embassy’s 251, December 26, 2 p.m., second paragraph.

1.
In his talk yesterday with the local representatives of the oil companies Kurusu expressed his desire to overcome the impasse created by the uncompromising attitudes of both sides in regard to the oil storage obligation and stated that he would explore the possibility of securing governmental guarantees of quotas and prices sufficient to warrant the companies in storing 6 months’ stocks of oil. Owing to the approaching holidays, however, he could do nothing until after January 7. He also suggested as a practical solution the utilization by the foreign companies of Japanese capital for internal distribution and stock holding.
2.
Local Standard representative has telegraphed details of the conversation to New York. I think it would be helpful to the Department to ask to see a copy of it.
Grew