894.6363/175: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
Tokyo, February 8, 1935—6
p.m.
[Received February 8—9:55 a.m.]
[Received February 8—9:55 a.m.]
28. My 21, January 31, 7 p.m.
- 1.
- A draft of the reply referred to has been received by the foreign oil companies. While showing some advance toward an agreement, the reply is disappointing and insufficient to allay the anxieties of the oil interests. With the oral assurances already received, however, it may afford an adequate basis for further discussion. The conversations were resumed yesterday with a more conciliatory attitude on the part of the Japanese, which may be due to the strong position taken by the foreign oil companies in regard to the Manchurian Oil Monopoly (see my 27, February 8, 5 p.m.). The Japanese officials now seem to recognize the necessity for some alteration of the oil regulations but state they cannot take action until after the Diet session ends because of the danger of internal political repercussions.
- 2.
- It was therefore intimated informally to the special representatives of the oil interests from Japanese sources that the conversations be suspended for several weeks and resumed after the close of the Diet. This suggestion is now under consideration.
Grew