740.0011 Pacific War/8: Telegram

The Consul General at Batavia (Foote) to the Secretary of State

Reference is made to the Department’s telegram dated October 22, 7 p.m. I was able discreetly and unofficially to obtain the desired information last night: The head of Netherlands delegation said that the Japanese have not made any such demands and that if they should do so the negotiations would be broken off immediately. The nearest [Page 193] approach in that direction up to the present time was an informal request from the Japanese delegation for permission for certain of their personnel to inspect the oil fields. The request was refused without hesitation and did not arise again. The only developments in the situation since my telegram of October 21, 3 p.m.,34 was a note in which the Japanese delegation said that the offers of the oil companies were widely divergent both in quantities and qualities from Japan’s needs and “the Japanese delegation would be much obliged if the Netherlands delegation are good enough to do their utmost, in the spirit of mutual welfare, to comply with the Japanese proposals by any means, like shifting of trade route, etc. The Japanese delegation have the pleasure to add that Japan has also a very big interest in exploitation of oil wells and that the Netherlands policy on allocating spheres of interest for existing companies are hardly satisfactory for Japan. The Japanese delegation are very much desirous to acquire rights of access to the territories now in exploration or exploitation as well as to the Government reserves.”

There is no indication as to what reply will be made. I can only say that the situation is fraught with dangerous possibilities.

Foote
  1. Not printed.