894.6363/199

Memorandum by the Foreign Oil Interests in Japan91

The following is an outline of the understanding reached with the Shokosho officials in connection with the future business of the Standard-Vacuum [Page 897] Oil Company and the Rising Sun Petroleum Company at a meeting held on April 13, 1935:

The Companies’ Understanding Answer of the Officials
1. The Standard-Vacuum Oil Company and the Rising Sun Petroleum Company will be granted as a minimum their 1935 gallonage. Yes.
2. The Government will make no commitment at this time to either Importers or Refiners for the allocation of the future natural increase but it will be divided fairly between Refiners and Importers. Quotas of gasoline to importers after 1935 will include a minimum of 33⅓ percent but probably more of the natural increase. Chosen possibly better. Kerosene, present position to be granted. Fuel oil to be discussed. Yes.
3. Stock-keeping obligations will be three months, including working stocks. To be arranged as soon as possible but not later than October 1, 1935. No expenditure to be incurred for stockkeeping until change made and position legalized. Yes.
4. Domestic prices to be based on costs and if present price is shown to be unremunerative the Shokosho will sanction an increase and will not oblige the Companies to sell at a loss. Yes.
5. There will be no discrimination against these Companies. Yes.

Cannot give guarantee of the above for a definite period, but any expenditure incurred will not be rendered unprofitable.

Those present at the meeting on April 13, 1935, were: Mr. Yoshino, Vice Minister for Commerce and Industry; Mr. Kurusu, Chief of the Bureau of Commercial Affairs, Foreign Office; Mr. Kojima and Mr. Sakai of the Department of Commerce and Industry; Mr. Hogetsu of the Foreign Office; Mr. Walden, Mr. Parker, Mr. Goold and Mr. Meyer of the Standard-Vacuum Oil Company; and Mr. Godber and Mr. Malcolm of the Rising Sun Petroleum Company.

  1. Copy transmitted to the Department by the Ambassador in Japan in his despatch No. 1253, April 19; received May 4.