893.6363/172: Telegram
The Secretary of State to the Ambassador in Japan (Grew)
251. Your 476, July 20, 1 p.m., in regard to the organization of oil companies. The Department approves your contemplated course of action and suggests that you be most emphatic in pointing out to the Japanese Government the utter inconsistency of action looking toward the setting up of what amounts to Japanese monopoly control in the areas mentioned with official Japanese assurances in regard to respect for foreign rights and interests in China and for the principle of equality of opportunity. In making this point, it is further suggested that, on the basis of information which you presumably have received from the representative of the American oil company, you inform the Japanese Government impressively of the very serious effects which the establishment of monopoly control over the marketing of petroleum products in the areas involved will have upon the business of American companies.
The Department desires that you make clear to the Japanese Government the grave concern with which we view the developments under reference.