Foreign Relations of the United States Diplomatic Papers, 1936, The Far East, Volume IV

894.6363/243: Telegram

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

Tokyo, January 15, 1936—11 a.m.
[Received January 15—1:27 a.m.]

12. Embassy’s 253, December 28, noon.⁶⁷

1. At a recent conference of the representatives of the foreign oil companies with Kurusu⁶⁸ the latter stated that the Vice Minister for Commerce and Industry⁶⁹ agrees in principle with the plan of giving the oil companies governmental guarantees covering quotas over an extensive period, reasonable profit and maximum stock holding obligation as well as equal treatment with Japanese refiners should the oil companies desire to refine in Japan. Kurusu therefore requests the oil companies to propose definite terms upon which they will comply with the stock holding provision of the law and the question has been referred to New York and London for consideration.

2. The Embassy and the local representatives of the oil companies are of the opinion that the Japanese authorities are now sincerely endeavoring to find some solution of the problem which will permit opposing oil companies to continue in business in Japan although it appears highly improbable that they will be able to allow stock holding obligation. It, therefore, appears desirable that the Japanese proposal outlined above be carefully considered.

Grew

67. Ibid., p. 939.
68. Saburo Kurusu, Chief of the Commercial Affairs Bureau, Japanese Foreign Office.
69. Shinji Yoshino.