893.6363 Manchuria/151: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received March 21—2:11 a.m.]
59. 1. Consulate General at Mukden reports as follows: [Page 885]
“March 20, 1 p.m. Yesterday’s Kokutsu quotes text of enactments issued at Hsinking yesterday providing (1) for the enforcement of the petroleum monopoly law on April 10th and (2) that present dealers may, by applying to monopoly authorities before April 15, obtain permits to sell stocks held on April 10. The Government however reserves the right to refuse such permits and to purchase stocks at market price.
Local army spokesman cannot confirm details but believes announcement to be authentic in substance.”
2. Manchukuo government’s reservation of right to purchase present stocks of oil of foreign companies indicates intention to take over such stocks in order to obtain temporary working supplies.
3. It is probable that the American oil interests will request an expression of opinion from the Embassy as to the advisability of applying for permission to sell their present stocks of oil under the second provision of the telegram quoted above. The Department’s opinion as to the attitude to be taken by the Embassy in such contingency, or in the event that the supplies of the American oil interests are forcibly taken over by the monopoly, would be helpful.
Repeated to Peiping.