Office of the Historian

894.6363/162: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

Tokyo, December 29, 1934—noon.
[Received December 29—3:33 a.m.]

286. My 285, December 27, 5 p.m.

1.
Kurusu yesterday informed Neville orally that: [Page 799]
(a)
Officials of the Department of Commerce and Industry would welcome discussions with the special representatives of the oil companies and he (Kurusu) believed that such discussions would be useful and well worth while.
(b)
Foreign oil refineries, if established in Japan, would participate in the growth of demand on equal footing with Japanese refineries.
(c)
Although adhering to the policy of developing the Japanese refining industry, a part of the natural increase in demand will be allotted to the foreign importers of refined products.
(d)
As the Japanese oil companies are unable to comply with the stock-holding provisions of the law because of lack of funds, some adjustment of the provisions will be necessary.
2.
The local manager of Standard-Vacuum has, therefore, telegraphed to his special representatives in Shanghai to proceed to Japan. It is expected that the discussions between the special representatives and the Japanese officials will start about January 7.
3.
British Embassy and British oil interests are following identical procedure.
Grew