The Chargé in China (Perkins) to the Consul General at Shanghai (Cunningham)62

Sir: I beg leave to acknowledge the receipt of your despatch No. 5560, of July 12, 1928,63 concerning the violation by the Ministry of Finance of the agreement entered into by it with the Standard Oil Company regarding kerosene oil and gasolene, in which you particularly request the Legation’s instructions as to the attitude you should take in the event the company calls upon you for assistance in this connection.

The Legation concurs in your view on this matter and perceives no objection to the Consulate General extending its good offices in endeavoring to have carried out the provisions of such private agreements as the one above described which have been entered into between American companies and the properly constituted Chinese authorities. It is obvious, however, that should the terms of such private agreements in effect impair the rights accruing to American citizens under the treaties, such firms would not be in position to complain of their inability to enjoy their full treaty rights during the period of the existence of these agreements. With reference to the question of disputes as to the interpretation of the provisions of [Page 510] such agreements, it is suggested that the Legation’s instruction to your office of September 17, 1926, regarding the case of the Liggett and Myers Tobacco Company and the Tobacco Products Corporation, may prove of some assistance.

I am [etc.]

Mahlon F. Perkins
  1. Copy transmitted to the Department by the Minister in China without covering despatch; received October 13.
  2. Not printed.