894.6363/279

Memorandum by Mr. Raymond C. Mackay and Mr. Eugene H. Dooman of the Division of Far Eastern Affairs

Mr. Mackay called Mr. Parker75 at New York by telephone.

Mr. Mackay referred to Mr. Parker’s letter of June 8,76 in regard to the above-mentioned subject, and said that due to Mr. Parker’s absence from New York yesterday afternoon an endeavor to reach him by ‘phone at the time indicated had proven unsuccessful. Mr. Mackay said that Ambassador Kurusu77 had called at the Department on June 10;78 that there had followed a discussion of commercial relations between the United States and Japan and of problems in connection therewith, including that resulting from the Japanese Petroleum Control Law; and that as Mr. Dooman was present at the discussion he (Mr. Dooman) would endeavor to acquaint Mr. Parker with the substance of that portion of the conversation which related to the oil situation in Japan.

Mr. Dooman then stated to Mr. Parker that, in the course of an extended conversation between Mr. Kurusu and an officer of the Department when various commercial problems lying between the United States and Japan were discussed, opportunity was had to explain to Mr. Kurusu in clear language the dissatisfaction of the [Page 795] American Government over the manner in which American oil interests in Japan were being dealt with by the Japanese Government. Mr. Kurusu had replied that unfortunately the issue had been brought about by the enactment of a law, with regard to which law he would reserve his opinion. Mr. Kurusu had expressed confidence that difficulties would be amicably adjusted. He had pointed out that the American oil interests in Japan had put forward three desiderata: first, a guarantee that they would be permitted to operate in Japan for a stipulated period of time; second, a guarantee that they be permitted to sell each year a definite quantity of petroleum products; and third, the raising of the price in Japan of gasoline. Mr. Kurusu had stated that the Japanese Government had met the foreign oil companies at once on the first two points, and that although there had been certain difficulties in increasing the price of gasoline he had heard shortly before leaving Japan that decision had been made to increase the price of gasoline.

Mr. Parker stated that apparently Mr. Kurusu had not been frank with regard to the second point; that although it is true that the Japanese Government has agreed to guarantee that the foreign oil companies be permitted to market each year a definite quantity of petroleum products, the foreign companies had in fact insisted that they be permitted to share in meeting the growing demand in Japan for petroleum products; and that this demand had not been met by the Japanese Government.

Mr. Dooman stated that the general principle of American interests being permitted to expand their business in Japan as there is increasing demand for the products handled by these American interests had in fact been emphasized to Mr. Kurusu.

Mr. Dooman added that Mr. Kurusu had expressed optimism in regard to certain negotiations which were taking place between the foreign oil concerns and Japanese interests, and that he (Mr. Kurusu) had given the impression that as soon as the various parties concerned had agreed upon a place for negotiation the negotiations would be brought rapidly to a successful conclusion.

In response to Mr. Dooman’s question whether Mr. Parker desired that any further points be discussed by officers of the Department with Mr. Kurusu, Mr. Parker stated that he would appreciate the hope being expressed to Mr. Kurusu that he would urge his Government to persuade Mitsui to send their representatives to New York to enter into negotiations with representatives of the foreign oil interests. Mr. Parker stated that the company’s representative in Japan had recently cabled that oil quotas for the second half of the year would be allotted by the Japanese Government on July 1, but that the terms of the petroleum law with regard to stocks would have to be complied with on or before June 30. It was Mr. Parker’s thought [Page 796] that if the Japanese Government could be assured that the negotiations with Mitsui were progressing satisfactorily, no penalties would be exacted for non-fulfillment of the stock keeping requirements. It is therefore very urgently desired that Mr. Kurusu do what he can to induce Mitsui to despatch representatives to New York as soon as possible. Mr. Dooman said that he would see Mr. Kurusu this morning, and that he would be glad to discuss the matter with him.

Mr. Parker expressed appreciation of the information which had been made available to him and stated that he did not expect that any further acknowledgment would be made of his recent letter to Mr. Hornbeck79 on the subject of Mr. Kurusu’s visit.

  1. P. W. Parker, president of the Standard-Vacuum OU Co., New York.
  2. Not printed.
  3. En route to Belgium as Japanese Ambassador.
  4. For memorandum of June 10, see p. 897.
  5. Stanley K. Hornbeck, Chief of the Division of Far Eastern Affairs.