793.94/4159: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
[Received February 13—5:20 a.m.]
43. Department’s February 4, 2 p.m. concerning sale by American and British oil companies of aviation gasoline to Chinese military.
This Consulate General has decided after careful consideration not to request American companies to refrain from selling gasoline to either Chinese or Japanese. The Japanese can easily obtain gasoline from Japan, buying it from the same companies which sell it here and a refusal to sell to either side in Shanghai would in reality constitute outright discrimination against the Chinese. Furthermore, a refusal on the part of American companies to sell gasoline to the Chinese authorities would undoubtedly have serious repercussions on the business of the companies up country. Unless, therefore, future developments disclose more cogent objections to the sale of aviation gasoline, I do not propose to request American companies to refrain from its sale. Minister Johnson concurs in the views of this Consulate General.
The British Consulate General referred the matter to British Foreign Office and on February 8th informed this Consulate General that Foreign Office instructed that it would be advisable not to sell aviation gasoline to either Chinese or Japanese. British Consulate General thereupon requested Asiatic Petroleum Company not to sell to either side and company agreed to act accordingly.
I informed British Consul General yesterday of the decision of this office, and it is possible that he may now again refer the matter to the higher British authorities.
Admiral Taylor has been informed.