693.116/132

The Minister in China (Johnson) to the Secretary of State

No. 2782

Sir: I have the honor to refer to the Legation’s despatch No. 2745, May 28, 1934,25 concerning the restrictions being placed upon the business of the American oil companies at Canton, and to enclose for the Department’s information a copy of the Canton Consul General’s despatch to the Legation No. 290, May 31, 1934.25

This despatch narrates the further efforts of the Consul General in this matter, and indicates that, in spite of the rebate enjoyed by the government-projected [-protected?] native refiners, those refiners have not been prospering because of the competition of certain independent refiners, and because the foreign oil companies have succeeded in supplying about 30% of the kerosene sold during the past four months.

As, because of this situation, the government-projected refiners were reported to have begun agitation for the establishment of a quota system, the Consuls General (American and British) deemed it advisable to endeavor to forestall the enactment of any such scheme by prior representations to the Inspector General for Foreign Affairs. Mr. Ballantine26 reports having received verbal assurances that no quota project is being considered.

Respectfully yours,

Nelson Trusler Johnson
  1. Not printed.
  2. Not printed.
  3. Joseph W. Ballantine, Consul General at Canton.