893.6363 Manchuria/309: Telegram

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

293. Embassy’s 198, July 14, noon, Manchuria oil claim.

According to figures furnished by local government [sic] representatives of Standard Vacuum, that company’s offer of settlement to Manchukuo authorities was United States $1,725,650 of which physical property represents $448,096; good will $101,439 and miscellaneous $298, 115. Rising Sun, British company, submitted offer equivalent to United States $2,089,375 of which $728,440 physical property; $846,545 good will; and miscellaneous $514,390. The “miscellaneous” items cover repatriating of employees, retirement allowances and duty paid on stocks.
The counter offer of Manchukuo to the two companies was a lump sum of Manchukuo yuan 2,000,000 from which yuan 150,000 is to be paid Texas Company for good will, that company already having disposed of its physical property.
The Standard representative states that his principals in New York have been informed of the foregoing and will discuss with the Department question of future procedure. We have expressed no opinion to local representative, but we believe that there is still room for negotiation and that termination at this time of negotiation would be premature. In that belief the British Commercial Counselor concurs.36
  1. Further efforts by the companies to bring about a settlement of their claims were not effective.