893.6363/162: Telegram

The Secretary of State to the First Secretary of Embassy in China (Salisbury), at Peiping

Following for Tokyo as No. 232, July 7, 6 p.m.:

“Reference Hankow’s 329, July 2, 2 p.m., and Peiping’s 409, July 2, noon, in regard to the organization of oil companies.

Please consult with your British colleague and with the representative of the Standard Vacuum Oil Company in regard to this matter and inform the Department of the result of such consultation.

For your confidential information, we apprehend in these reported developments a definite move on the part of the Japanese to establish in Chinese territory under their control monopolies similar to those in Manchuria and as such inimical to American trade interests; and we consequently feel that a protest should be made in the most emphatic terms against the organization of the proposed companies. We could not but view the development in China of a situation which the organization of the companies foreshadows as nullifying repeated Japanese assurances with regard to the maintenance of the open door and equality of opportunity in China and as calling for consideration of appropriate means to meet such an undesirable development.

The Department would appreciate having the benefit of your views with regard to this problem in the light especially of the assurances recently given to you by the Foreign Minister.”

Repeat to Hankow.

Hull