893.6363/199: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received 2:20 p.m.]
639. Our 574, September 3, 3 p.m.80 and 634, September 29, 7 p.m.—Mengchiang oil monopoly. The following note in translation has been received from the Foreign Office:
[“] Number 29/Asia 1, Ministry of Foreign Affairs, September 29, 1938. Excellency: I have the honor to inform Your Excellency that I have carefully perused the statements concerning the control of the distribution of oil products from Inner Mongolia area made during our conversation on July 21, 1938, as well as those contained in Your Excellency’s note No. 1035, September 6, 1938.80
I have recently received a report from the Department of Agriculture at Kalgan to the effect that in regard to the transportation and sale of oil products in the Inner Mongolia area the Inner Mongolia Area Committee has already, on September 24, 1938, abolished the order which had been promulgated for the control of the distribution of oil products in the Inner Mongolian area.
I am informed that by the above disposition of this matter, oil companies of Your Excellency’s country may, as heretofore, freely distribute oil products; and I therefore believe that apprehensions of Your Excellency’s Government concerning the establishment of a monopoly in that area should be entirely dispelled.
I am further informed that this action on the part of Inner Mongolia was taken solely from the broad viewpoint of consideration for the interests of the oil companies of Your Excellency’s country and of a desire to obtain their cooperation in the distribution of oil.
I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration. Kazushige Ugaki (seal) Minister of Foreign Affairs. His Excellency Joseph Clark Grew, Ambassador Extraordinary and Plenipotentiary of the United States of America, Tokyo.”