894.6363/259: Telegram

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

33. Your 77, March 20, 8 p.m. Officers of American oil interests showed to and discussed with officers of Department last evening texts of cablegrams sent earlier yesterday by Standard-Vacuum and Shell giving identical instructions to their respective representatives in Japan.

These texts indicate and conversation confirmed that the oil interests concerned are in complete agreement regarding approach to the Mitsui interests and that this approach is to be a common undertaking looking toward a common agreement. Texts do not disclose details of plan to be proposed to Mitsui, nor did spokesman of interests, though asked, appear to have any details worked out.

Department approves the informal action taken by you, as reported, but feels that great care should be taken to see that action taken by the two interests and action by the two Embassies in support thereof be closely and discreetly synchronized.

Referring to your projected call on the Vice Minister for Foreign Affairs, might it not be more appropriate first for representatives of the oil interests to make request to Japanese authorities that suspension of the regulations be authorized, and then for Embassies to give support to this request? Will you be in position on Monday to affirm that “very important negotiations are now taking place”? Department has full confidence in the Embassy’s judgment and discretion, but, in view of lack of knowledge regarding method, content and moment of projected approach by oil interests to Mitsui, suggests [Page 792] that Embassy feel its way very carefully and avoid getting out ahead of interests or of British Embassy.

Phillips