893.6363 Manchuria/17: Telegram

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

243. Reference Mukden Consul General’s despatch to the Department May 495 regarding Manchuria Company. 1. British Legation informs me that it has received from its Foreign Office information to the effect that the British Ambassador at Tokyo advised his Foreign Office that he had been informed on reliable authority that it was contemplated in the autumn of this year to increase capital of the Manchuria Petroleum Company to such an extent that a monopoly would be possible and that a monopoly would then be established. In view of this fact the Ambassador had recommended to his Foreign Office the possible desirability of informal representations to the Japanese Government at the present time rather than to wait until a monopoly had actually been established. The Ambassador is said to have expressed the belief that such representations would be more likely to prove effective if made before any decisive measures had been taken toward establishment of the monopoly. British Foreign Office has referred matter to British Minister here with request for his views and those of the American Legation.

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2. The Legation believes that if representations are to be made to the Japanese Government, it were better to make them before the alleged plan for the creation of a monopoly has materialized. However, it feels that the American Ambassador at Tokyo is in a better position to determine the desirability and possible success of such action.

3. The Legation would appreciate receiving the Department’s views upon this matter in order that it will be in a position to reply to the British Legation’s inquiry.

Repeated to Tokyo.

Johnson
  1. Not printed.