894.24/1167
The Japanese Embassy to the Department of State69
The Japanese Embassy has the honor to thank the Department of State for its good offices which made possible the fulfillment on the part of Universal Oil Products Company of the terms of its 1928 contract with the Japan Gasoline Company.
Unfortunately, however, the Japanese Embassy regrets to note that as a result of the decision of the Department of State last December placing a moral embargo on plans, plants, manufacturing rights, or technical information required for the production of high quality aviation gasoline, it has been rendered impossible on the part of Universal Oil Products Company to fulfill the terms of its 1938 contract with Japan Gasoline Company.
Accordingly, Japan Gasoline Company has been obliged to file a damage suit against Universal Oil Products Company for non-fulfillment of the terms of said contract. However, in view of their many years of friendly business connections, Japan Gasoline Company, in truth, prefers an amicable settlement outside of court.
In view of the circumstances, if the Department of State, by dint of its good offices, could grant a license to export all the “processes” stipulated in said contract to Universal Oil Products Company which do [Page 610] not relate immediately to the production of high quality aviation gasoline, the Japanese Embassy would suggest to Japan Gasoline Company that it withdraw the damage suit, while establishing and reserving its right to the “processes” for the production of high quality aviation gasoline, as stipulated in the said 1938 contract, but shelving it for the time being.70