393.115 Tung or Wood Oil/190: Telegram

The Chargé in Japan (Dooman) to the Secretary of State

408. Shanghai’s 726, August 14, 4 p.m., wood oil at Hankow.

1.
I informally took up this matter some days ago at the Foreign Office and was told in confidence and off the record that the Japanese military authorities in China suspect that the wood oil purchased in recent months or under contract for sale to the United States is intended to be applied against the $25,000,000 credit loaned to China. The Foreign Office therefore suggested that the conversations between Gauss and his Japanese colleague be allowed to develop further before any intervention in Tokyo was considered.
2.
I suggest that the Department may now wish to consider in the light of the facts before it whether I should take any action. If I am desired to make representations on the basis of treaty rights, such representations should in my opinion be of the most formal character.

Repeated to Chungking, Peiping, Hankow.

Dooman