892.6363/61: Telegram

The Secretary of State to the Chargé in Siam ( Chapman )

8. On April 15 representatives of Standard-Vacuum Oil Company handed the Department what purported to be a copy of a [Page 891] proposed Siamese petroleum law and regulations which were reported to have had a first reading in a secret session of the Siamese Assembly. The proposed law and regulations would provide, inter alia, for (1) maintenance of reserve stocks by importers of not less than half the quantity of their yearly permitted imports; (2) fixation of petroleum prices by Siamese Government; (3) optional purchase of petroleum by Siamese Government at government-fixed prices; and (4) prior authorization by the Government for the cessation or transfer of oil import business.

In compliance with request of the company’s representatives that the Department take steps toward safeguarding their business interests in Siam, the Department instructed our Embassy at London to inform the British Foreign Office that we were prepared to make an appropriate approach to the Siamese Government and that we felt that similar and concurrent action by our two Governments would be desirable. On April 20 Embassy replied that it had been informed by the British Foreign Office that the British Board of Trade had been approached in the matter by the interested British company and that the Foreign Office promised to get in touch with the Embassy later.

Under date May 11 the Embassy at London reported information received from the Foreign Office to the effect that the British Minister to Siam had on March 23, on his own initiative, made oral inquiries of the Siamese Foreign Minister and that the latter had assured the British Minister that such a petroleum law had not been presented to the Assembly or been considered by the Siamese Government.

Department is forwarding to you by the next pouch copies of memoranda and other correspondence in regard to this matter.31

The Department desires that you discuss the situation with your British colleague. After such discussion you are authorized in your discretion to make, as on your own initiative and not as under instruction from the Department, an appropriate oral inquiry of the Siamese Foreign Office.

The Department is instructing the Embassy at London32 to inform the British Foreign Office of the substance of the foregoing paragraph.

You should inform the Department by telegraph of your decision and action, if any, in this matter.

Hull
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