The American Embassy in Japan to the Japanese Ministry for Foreign Affairs
Supplementing the information contained in the Embassy’s representations of February 1387 concerning the restrictions on the shipment of oil between Canton and other ports, including Kongmoon, Hongkong, and Shanghai, it has been learned that in addition to preventing such shipments to other ports, the Japanese military authorities appear to have fostered an organization in that area which gives to Japanese petroleum dealers what amounts to a monopoly.
According to information emanating from the Standard Vacuum Oil Company, many customers in districts near to Canton, who formerly were served by the Company, now purchase their stocks from Japanese firms because the American firm is unable to make deliveries to them. It appears that since about the middle of October, 1940, restrictions in force in the Canton area have operated in such a way as to obstruct American trade for the benefit of Japanese oil dealers.
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