Foreign Relations of the United States Diplomatic Papers, 1940, The Far East, Volume IV

393.115 Standard Vacuum Oil Co./302: Telegram

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

Washington, December 12, 1940—9 p.m.

539. Reference your despatch No. 4997, September 21, 1940; and Shanghai’s despatches Nos. 3424, September 9, 3450, September 19, and 3476, September 30,⁴⁷ in regard to Japanese interference with American trade in petroleum products in China.

According to an official of the Standard-Vacuum Oil Company, the situation at Shanghai with respect to the shipment of petroleum products into the hinterland continues to deteriorate. Restrictions upon shipments, far from having been removed, have been tightened and with this situation prevailing Japanese interests are approaching American interests to serve as suppliers to Japanese interests for all classes of petroleum products at Shanghai and Yangtze ports for distribution by Japanese interests in the interior. The Standard-Vacuum Company is at present refusing these offers but clearly Japanese restrictions upon shipments operate as pressure. Officials of the Standard-Vacuum Company are endeavoring through Japanese advisers in Shanghai to discuss the question with officials in Tokyo and to clarify the company’s position. It has been suggested that further representations by this Government at the present time might be of considerable assistance. It is suggested therefore that unless you perceive objection, and after consultation with the principal representative in Japan of the Standard-Vacuum Oil Company, you make appropriate additional representations at the Foreign Office in regard to this matter.⁴⁸

Sent to Tokyo via Shanghai. Repeated to Peiping.

Hull

47. None printed.
48. In telegram No. 1368, December 23, 6 p.m., the Ambassador in Japan reported that, in view of delay in discussions at Shanghai and unconfirmed reports that tight shipping restrictions in the Shanghai area might be modified after the beginning of 1941, the company representative had asked the Embassy to take no action regarding further representations for the present (393.115 Standard Vacuum Oil Co./317).