The Secretary of State to the Sinclair Consolidated Oil Corporation

Gentlemen: A copy of your letter to the Department of May 12, 1921, concerning a prospective oil concession in the northern portion of the island of Sakhalin, has been furnished by Mr. A. C. Veatch. It is to be regretted that the original is not in the files of the Department and has not heretofore received an answer.

You are aware, of course, that the Government of the United States has not recognized the so-called Far Eastern Republic, from which it is understood that the concession in question would be received. Having regard to this fact, and to other uncertainties in the situation, the Department cannot at this time encourage you to proceed to the conclusion of definite engagements. As the situation with respect to northern Sakhalin is receiving constant consideration, it is suggested, however, that the representatives of the Sinclair Exploration Company continue to maintain contact with the Department for the exchange of information and further consideration of their project in the light of subsequent events.

I am [etc.]

Charles E. Hughes