893.6363/172: Telegram

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

476. Department’s 232, July 7, 6 p.m., via Peiping—organization of oil companies in North China. Standard Vacuum Oil Company informs us today that it has received instructions from the parent company in New York that they do not wish to participate in any arrangement which would prevent their operation as an American company marketing their products independently and under their own brands in North China and have requested our full support in maintaining equality of opportunity for them to operate in China concurrently with any special company that may be established there.

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Accordingly unless otherwise instructed I propose to see the Foreign Minister tomorrow morning and protest along the lines indicated in the Department’s telegram under acknowledgement.

Although my British colleague will not return to town until tomorrow, I understand from his Commercial Counselor that he is prepared to make a protest along similar lines.

Grew