893.6363/58: Telegram

The Minister in China ( MacMurray ) to the Secretary of State

10. Following from American consul [general,] Canton:

“January 5, 2 p.m. Referring to my despatch number 352 of December 21st, I have been informed Standard Oil Company is seriously considering accepting local government’s offer to operate oil monopoly. Perhaps there is no alternative, but such step would seem to be very unfortunate because of the effect upon the rest of China and probable complications with other oil companies.

General Boulder [Chiang Kai-shek] of Whampoa Cadets has returned to Canton. It is understood that he has compromised his differences with other party leaders. Reliably informed Borodin is leaving Canton shortly, probably for Moscow.”

2. To which I have replied as follows:

“January 7, 3 p.m. (1) Your January 5, 2 p.m. The Legation could not countenance or support any arrangement between the socalled Canton Government and an American Company imposing or based upon restraint on trade contrary to treaty and to the established policy of the United States Government as concerns monopolies.

(2) You should informally advise the local representative of the Standard Oil Company in the above sense.

(3) I am repeating your January 5, 2 p.m. and this telegram to the Department.”