893.6363 Manchuria/110: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received December 13—7:38 a.m.]
275. 1. In the conversations referred to in paragraph 1 of my number 274, December 13, 2 p.m., Kurusu suggested in regard to the question of the Manchuria Oil Monopoly that the foreign oil companies should endeavor to reach a voluntary agreement with the Monopoly which would reserve to the companies adequate privileges without involving an abandonment of the treaty rights of their respective Governments and that such treaty rights in the meantime could be discussed by the Governments concerned. He said “Let the companies negotiate on a commercial basis with Hsinking and settle the problem quickly. Meanwhile the proceedings can go on arguing about the treaty position for a year or as long as may be necessary.”
2. It appears to the Embassy that for foreign oil companies to reach an agreement such as is indicated above would imply acceptance of the Monopoly system and to that extent would weaken our treaty position.78
Repeated to Peiping by mail.
- The Department in its telegram No. 206, December 17, 5 p.m., replied: “Department is similarly minded.”↩