793.94/3916: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
[Received February 3—9:15 a.m.]
Standard Oil Company and Texas Company having [have?] received inquiries from Chinese military concerning sale to them of aviation gasoline for delivery at Hungjao Airdrome, Shanghai, and also at Hangchow, Chekiang. British Consulate General has informed me that British Oil Company has received similar inquiries but British Consulate General considers it most unwise at the present time and has so informed British Company. British Consulate General considers that sale of gasoline to Chinese military would be unwise as Chinese might not hesitate to drop bombs in the Settlement by accident in retaliation for Japanese aerial attacks, or for purpose of destroying Japanese base or other Japanese property. British Consulate General states it will inform British Oil Company that it cannot fill such orders at the present time, but has no objections to sale of gasoline to foreign interests [after?] seeking authorization from Foreign Office.
I do not wish to restrain the American firms, but wish to inform the Department as to the dangers in the situation as expressed above. Furthermore, it would probably be provocative of an attack should it become known to the Japanese that large quantities of aviation gasoline were in the hands of the Chinese military.
I should dislike to interfere in any way with the commercial aviation particularly the China Airways which is very useful means of communication. It should also be kept in mind that American companies are in greater favor with Chinese military and naval aviation circles than are British or Eussian companies. Also even if British and Americans refuse supplies this would, if stock available, inure to benefit through the Russian companies.
It is understood that British and American oil companies have sold fuel oil to Japanese naval vessels in Shanghai.
The Department’s instructions will be appreciated.
Repeated to the Legation and Nanking for information.