894.6363/258: Telegram

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

73. Department’s 30, March 10, 2 p.m.

1.
American and British Embassies today made oral and informal representations to Kurusu along the lines suggested by the Department. The representations were not made at an earlier date as the British Embassy had not received instructions. On March 11, however, as a conference had been arranged, the local representatives of the oil companies presented the plan of their head offices to Kurusu and the Vice Minister for Commerce and Industry. The local representatives did not desire to postpone their conference until the British Embassy had received instructions and believed that the diplomatic representations would be as effective if not more effective as a follow up rather than as a paving of the way.
2.
Today Kurusu seemed decidedly pessimistic. He said that the Vice Minister for Commerce and Industry was examining the companies’ proposal to ascertain if it were worth while to endeavor to continue the conversations; that it would be necessary to reach final decision before March 20 when the quotas for the next quarter would be set; and that he did not think that an independent storage company would be feasible because of lack of adequate compensation. He said that he would inform the Embassies as soon as the Vice Minister for Commerce and Industry had formulated his reply.
Grew