The Chargé in Lithuania (Kuykendall) to the Secretary of State

No. 288 (Diplomatic)

Sir: I have the honor to refer to the Legation’s despatch No. 285, dated July 27, 1935, concerning the petroleum situation and to report the latest developments.

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The Legation is of the opinion … that the Lithuanian Ministry of National Defense will never permit the Standard Oil Company to liquidate its branch office in Lithuania, should it involve the removal of the company’s tanks at Memel and its 50 tank stations situated throughout the country. The only solution which presents itself, [Page 572] should diplomatic intervention on the part of the American Government prove ineffectual, is for the Lithuanian Government to carry the loss in supplying the local branch organization of the Standard Oil Company with Russian petroleum products at acceptable prices, viz: the prices paid by “Lietukis”, until the expiration of the Lithuanian Russian Trade Agreement on December 31, 1935.

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Respectfully yours,

C. Porter Kuykendall