894.6363/293
The President of the Standard-Vacuum Oil Company of New York (Parker) to the Chief of the Division of Far Eastern Affairs (Hornbeck)
Dear Dr. Hornbeck: When I say that I just returned from Europe this week and that when I left New York early in September, our negotiations in Japan had not materially advanced beyond those described in my letter of July 14th, I am sure you will understand why I have really had no occasion to write before this.
The first part of this month while I was in London, our British friends and we were able to reach a clear understanding of the course we should pursue, and consequently, I am now pleased to advise you that the Japanese Government has accepted in principle a plan whereby Mitsui & Company will store, on behalf of both of us, the non-commercial stocks obligatory under the Petroleum Control Law. The final details are now being worked out in Japan and we anticipate these will very shortly be settled to the satisfaction of all concerned.
Briefly, it is contemplated that Mitsui will build sufficient tankage and purchase sufficient stocks to meet these requirements and in return will receive the Government subsidy plus a commission from us on a small amount of business we will cede them, thus providing for an adequate return against their investment.
When the negotiations are definitely concluded, we shall have pleasure in advising you, but we wish to take this opportunity now of expressing our deep appreciation to you personally, and to the State Department, and also of course to the American Embassy in Tokyo, for the most valuable assistance constantly rendered us during this rather difficult and complicated period.
Sincerely yours,