893.6363 Manchuria/182: Telegram
The Secretary of State to the Ambassador in Japan (Grew)
73. Embassy’s 93, April 26, 5 p.m. and Department’s 72, May 1, 10 a.m. Following further discussion with Department on April 29 representatives of Standard-Vacuum decided, with Department’s approval, to instruct their representatives in Japan as per their message transmitted by Department in telegram 72, May 1, 10 a.m.
Department assumes that if British oil interests are similarly minded the procedure outlined in that message will be agreed upon and be followed by both oil interests. If there exists or appears divergence of view or intention, please inform Department promptly.
[Page 911]Department has considered carefully Embassy’s 93, April 26, 5 p.m. However, as present primary desire of Standard-Vacuum, and presumably also of the British interests, is to salvage as much as possible of their investments in Manchuria, Department feels that best chance for ultimate success would lie in first a direct approach by oil interests to the monopoly and/or authorities in Manchuria. This would involve offers by the interests to sell, including all items, rather than presentation by governments of claims. Department feels that, at least until such time as possibilities of negotiation by the companies in Manchuria have been exhausted, presentation of claims by companies or Embassies to Japanese Government would be unwise, as Japanese Government probably would at once disclaim all responsibility and, if it made any offer of assistance, be disposed to insist that its sole capacity in the matter should be that of a mediator. Department therefore desires that you continue to cooperate with the American interests in consultation and advisory capacity and report promptly all developments of importance but make no approach to the Japanese Government in regard to this subject until further advised.
Department feels that its views and those of the company as indicated above and in Department’s 67, April 24, 7 p.m. are in no way a departure from or inconsistent with the principles and line of action hitherto followed by the American and British interests and Governments in connection with this case.