393.115 Tung or Wood Oil/23: Telegram

The Secretary of State to the Consul General at Shanghai (Gauss)

270. Hankow’s 174, July 26, 9 p.m., wood oil at Hankow.

1.
The Department has been requested by the National Paint, Varnish and Lacquer Association on behalf of Werner G. Smith Company, Spencer Kellogg and Sons, Inc., and S. L. Jones and Company to lend its assistance in obtaining permission for one vessel to proceed to Hankow or other points on the Yangtze to bring out wood oil belonging to these firms. It is desired that you consult representatives of these and other interested firms (the Department has also been approached in regard to wood oil held at Hankow by Bunge North American Grain Corporation and Pacific Vegetable Oil Corporation which claims to be the owner of oil shipped by O. E. Vongehr) and, if they indicate willingness to charter the floating equipment needed, that you approach the appropriate Japanese authorities with a view to arranging for the transport of the wood oil to Shanghai.
2.
With regard to paragraph 2 of Hankow’s telegram under reference, the Department perceives no need for providing American naval escort and believes that such action would not be desirable.
3.
In your approach to the Japanese authorities you should outline the history and status of the wood oil in question and state that the Department is being pressed not only by the owners of the oil but also by members of the paint and varnish industry. You should also point out that the oil is perishable and that the continued prevention of its export and the consequent spoilage of the oil can be of benefit to no one. You should if possible avoid a discussion of the general question of navigation on the Yangtze and should of course avoid any commitment which might prejudice either future similar requests or the position of this Government in regard to the general question of navigation on the Yangtze.
4.
It is of course desired to avoid the appearance of discrimination between various American owners of goods held in Yangtze ports. It appears that wood oil, in view of its perishable nature and of the fact that the American owners are prepared to provide a vessel to transport their cargo, may be considered to be entitled to special consideration. However, depending upon the capacity of the floating equipment to be employed and the attitude of the Japanese authorities, it might be found practicable to arrange also for the transport of other American goods which are awaiting shipment to Shanghai.
5.
If and when you have made a definite approach to the Japanese authorities, Tokyo is requested, upon the receipt from you of advice that you consider such action would be likely to be helpful, to take the matter up also with the Japanese Foreign Office.

Sent to Shanghai. Shanghai please repeat to Tokyo. Repeated to Hankow, Peiping, and Chungking.

Hull