Foreign Relations of the United States, Diplomatic Papers, 1938, The Far East, Volume IV

893.6363/198: Telegram

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

Tokyo, September 29, 1938—7 p.m.
[Received September 30—8:20 a.m.]

634. Our 574, September 3, 3 p.m.,⁷³ and previous on Mengchiang oil monopoly.

1. The Foreign Office informed us today that we would shortly be notified officially that recently (apparently on September 24) Mengchiang Confederation Committee ordinance number 13 of July 5, setting up the projected petroleum monopoly, was canceled.

2. The Foreign Office stated informally and in confidence that the monopoly was set up on the basis of assurances from interested Japanese businessmen that the foreign oil companies would willingly participate in the Mengchiang Petroleum Company and supply that concern with kerosene and gasoline; that the visit to North China of Powell of the Asiatic Petroleum Company and subsequent clarification of attitude of non-participation by the foreign companies had exposed the conspiracy on the part of interested Japanese; and that steps were then taken to have the organic monopoly ordinance abolished.

Repeated to Chungking, Tientsin and Shanghai.

Grew

73. Not printed.