893.6363 Manchuria/264: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received December 7—7 a.m.]
205. Department’s 42, October 28, 1 p.m., and Embassy’s despatch No. 88 of November 14.28 Ballantine reported in despatch November 18 that representative of Standard-Vacuum Oil Company stated that at an interview with officials of the Finance Department of the “Manchukuo” government on November 13 he was told that the government will not pay compensation for loss of business and will pay only for the purchase price of certain properties.
Ballantine reported November 28, 5 p.m., that he had received a request from the company for assistance in connection with the government’s decision. Ballantine stated that the British Consul General had been instructed to make “friendly inquiry” of the “Manchukuo” authorities and would interview the Vice Minister of Foreign Affairs on December 4. The Embassy authorized Ballantine to join his British colleague in informal and oral inquiries.
Ballantine telegraphed December 5, noon, as follows:
“December 5, noon. Vice Minister of Foreign Affairs in an interview yesterday with British Consul General and myself did not indicate what his government’s intention was in regard to the claims of the foreign oil companies, but promised to refer the question to Hoshino of the Finance Department upon the latter’s return on a prospective absence of some days. He stated it to be his belief that his government was not in a position financially to meet claims of such magnitude, but that he knew that the Department of Finance was now endeavoring to appraise companies’ physical properties to be taken over, and he offered to urge the Finance authorities to expedite this work, suggesting to us at the same time that further discussion be left in abeyance until appraisal was completed. We tried to make it clear the companies were not interested in semi-physical properties except as a part of a lump sum settlement to include compensation for loss of business as going concerns. Unless otherwise instructed I propose awaiting the next move from the Manchukuo authorities or any further requests from representatives of the American oil companies. Embassy informed.”
Embassy approves Ballantine’s proposed action.
- Despatch not printed.↩