Office of the Historian

793.94/3916: Telegram

The Secretary of State to the Consul General at Shanghai (Cunningham)

Washington, February 4, 1932—2 p.m.

Your February 3, 4 p.m., in regard to sale by American and British oil companies of aviation gasoline to Chinese military.

Department perceives good arguments both pro and contra. It is Department’s desire that there be as full cooperation as may be possible between British and American action, both official and unofficial in such matters. On this particular problem you should, after consultation with the American military authorities, attempt to work out with the British Consul General a common course.

Department notes your statement that it is understood that British and American oil companies have sold fuel oil to Japanese naval vessels at Shanghai. You should bear in mind the principle of nondiscrimination; also that there is under American civil law nothing in prohibition of such sale. If you and your colleagues decide that such sales are inadvisable, it would seem that action taken by you toward prevention must be based on other than legal grounds; also that an effort to dissuade should apply to sales to Japanese as well as to Chinese. Department doubts the force of the British Consul General’s apprehension as reported, but you are in a better position to judge. Furthermore, if Chinese can obtain gasoline supplies from Russians, what advantage is there to be derived in relation to preventing possible aerial attacks by Chinese through avoiding sale to them of gasoline from American and/or British firms?

In connection with this whole problem, might it not possibly be arranged either to decline to sell so long as fighting continues both to Chinese and to Japanese or to secure promises from both Chinese and Japanese that there shall be no flying their military planes over or in close proximity to the Settlement?

Keep in mind particularly the principle of cooperation with your British colleague and the principle of impartiality as between Chinese and Japanese.

Repeat to Nanking and Legation as Dept’s No. 20 and 41 respectively.

Stimson