893.6363 Manchuria/267: Telegram

The Ambassador in China (Johnson) to the Secretary of State

231. Embassy’s 205, December 6, 7 p.m. Following telegram has been received from the Consul General at Mukden:

“December 15, noon. I have received the following communication dated December 13th from Minister for Foreign Affairs:

‘With regard to the matter of purchasing the equipments of the three oil companies, I have discussed the subject with Mr. Hoshino and we are agreed in [Page 937] the opinion that this Government is not in the position to recognize the principle of compensating the losses incurred by your oil concerns as a result of the enforcement of our national policy, although the Finance Department should endeavor to complete, as soon as possible, the investigations as to the value of the equipments and be prepared to purchase the said equipment for a reasonable price in accordance with the laws and regulations.

When the negotiation reaches a stage which requires my good offices, I shall be ready to do my best to settle the matter in a manner satisfactory to both parties.

I am, et cetera, T. Ohashi.’

Embassy at Tokyo informed.”

Johnson