893.24/722
The Consul at Rangoon (Brady) to the Secretary of State
[Received April 18.]
Sir: I have the honor to report that increased supplies of American motor gasoline for China are coming to Rangoon, as a result of the interruption of communications between the port of Haiphong, Indochina, and Yunnanfu. The shortage of gasoline in China is reported to be very serious.
A total of 81,845 drums, or 4,337,785 gallons, of American gasoline for China has been imported at Rangoon to date, and more than half of that quantity has been received since February 1, 1940. The first shipment of American gasoline reached this port in July 1939.
All recent supplies of motor gasoline have been from Hong Kong, where both the Socony-Vacuum Oil Company and the Texas Company, the two American concerns that are supplying China under contracts [Page 649] with the Universal Trading Corporation, have tank storage. American gasoline is delivered at Hong Kong by tankers, and it is placed in drums there for re-export. Only gasoline from the United States may be supplied under the contracts, as the purchases have been made with funds obtained through the Export-Import Bank credit. The steel sheets used in making the drums are also of American origin.
Some of the earlier supplies of gasoline for China delivered at this port were direct shipments from the United States, on American vessels. Additional supplies from Hong Kong due to reach Rangoon before the end of March will amount to about 15,000 drums, or 795,000 gallons.
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Respectfully yours,