894.6363/296: Telegram

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

261. Embassy’s 259, December 14, 1 p.m.

1.
The Asahi this morning reports that the Japanese oil companies are agitating against the granting of any increases in the gasoline sales quotas by the Ministry of Commerce and Industry to the foreign oil companies because (a) the purpose of the petroleum industry law is to protect the Japanese oil industry and therefore the quotas of foreign companies should not be increased and (b) the foreign oil companies have as yet failed to fulfill the oil storage obligation. The newspaper adds that the question is expected to become an issue in the coming session of the Diet.
2.
The above is transmitted as a further indication of the situation with which the foreign oil interests are faced in Japan.
Grew