893.6363 Manchuria/177: Telegram
The Secretary of State to the Ambassador in Japan (Grew)
67. Your 91, April 23, 5 p.m. Legal counsel of Standard-Vacuum has consulted with Department and Department understands that Standard-Vacuum is telegraphing Parker substantially as follows (in paraphrase):
“Company, after such consultation, advises Parker that declaring facilities to the monopoly should not prejudice presentation later of a claim; company feels that practical solution would be to offer stocks, equipment and plant, including those at Dairen if Parker considers desirable, at a comprehensive price which would cover all damage sustained as result of monopoly, including all items mentioned in Parker’s telegram of April 22; in case settlement be achieved on that basis there would be no need for filing claim; if result be partial or unsatisfactory, claim could thereafter be filed, and thereupon Washington would consider possibilities in reference thereto in then existing circumstances; probably no need for advance recourse to courts. Washington suggests that you seek to make your and friends’ action coincide and correspond; and that companies should by negotiation make every effort to obtain compensation in full before there is considered the question of presenting claims to the governments concerned. Embassy is being instructed by Washington.”
You will realize that this means that Department and Standard-Vacuum feel it best for the oil interests at this point to endeavor to make the best settlement they can with the local authorities and monopoly in Manchuria, leaving the question of possible claims and governmental action to the future.
[Page 907]Late this afternoon, legal counsel was informed by telephone from New York that British interests had telephoned from London giving account of British Government’s attitude indicating that British Government’s thought apparently parallels ours as indicated above.