393.115 Tung or Wood Oil/253: Telegram
The Secretary of State to the Consul General at Shanghai (Gauss)
Washington, September
15, 1939—4 p.m.
346. Your 816, September 13, 1 p.m., in regard to wood oil.
- 1.
- The Department is both surprised and concerned to note that at this late date the Japanese authorities are seeking to qualify their agreement to facilitate the shipment of all American-owned wood oil now at Hankow by apparently insisting that, as a condition precedent to the removal of such oil, American owners shall first sell their stocks to the Japanese military authorities on an understanding that, following clearance of such stocks from the Yangtze, the prior owners may repurchase their respective lots of oil. Such a procedure would, as indicated in your telegram under reference, involve not only a matter of principle but also a number of practical considerations, and the Department thoroughly approves of the approach which you have made to the Japanese authorities in the matter.
- 2.
- The question whether or not the concerned American interests shall follow the procedure under consideration is a matter for decision by them. To those American interests which elect to follow that procedure you should make clear that the Department cannot in any way be a party thereto and that all of their arrangements should be made directly with the Japanese authorities. To those American interests which elect not to follow the procedure under consideration you should say that, although the Department is not in position to prophesy what the outcome may be, it will continue in its endeavors to effect removal from Hankow of the American-owned wood oil now at that port.
- 3.
- You may in your discretion make known to your Japanese colleague the substance of any part of the foregoing.
Sent to Shanghai. Repeated to Hankow, Chungking and Peiping. Shanghai please repeat to Tokyo.
Hull