894.6363/235: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

251. Embassy’s 246, December 19, 3 p.m. Oil.

1.
The local representatives of the Standard and Shell interests on December 23 received from the Ministry of Commerce and Industry a verbal reply to their letters of December 14 (Embassy’s 240, December 13, 6 p.m.). The reply stated that the stock keeping obligation cannot be changed; that the five-point memorandum was the result of private conversations and is not binding; that penalties and administrative measures, such as reduction of quotas, will result from noncompliance with the rigid provisions of the law; and that the matter of liquefaction of coal has no connection with the enforcement [Page 939] of the stock keeping obligation. The above information in greater detail has been telegraphed to the head offices of the oil interests.
2.
The local representatives of the oil interests will discuss the above reply with Kurusu tomorrow. I shall telegraph any important developments which may emerge from the discussion.
Grew