893.6363 Manchuria/18: Telegram

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

257. Legation’s 243, June 12, 3 p.m., despatch No. 929, June 13 from the Consul General at Mukden,96 copy of which was supplied to the Embassy at Tokyo, indicates that Consul General is reliably informed that necessary legislation will be enacted about September and that monopoly of petroleum business will go into effect early next year when Manchuria Petroleum Company begins to function. It is reported that Manchuria Petroleum Company will engage in refining only, its products to be sold to monopoly business and thence distributed through a system employing existing dealers of foreign companies. Present capacity of refinery which is under construction at Dairen is reported to be 15,000,000 gallons per annum with eventual expansion contemplated. If reported capacity is correct Consul General anticipates approximate reduction of 40 percent in imports of foreign distributors as compared with 1933. He suggests that if representations are to be made they be made prior to September next when it is anticipated monopoly law or regulations will be promulgated.

Johnson
  1. Despatch not printed.