894.24/1329

The Consul at Tsingtao (Meyer) to the Secretary of State

No. 73

Sir: With further reference to my telegram no. 10 February 11, 3 p.m.31 I have the honor to report that the American ship S. S. Scottsburg arrived at this port on February 20, 1941, carrying for the account of Mitsubishi Shoji Kaisha a cargo of 37,904 drums of gasoline each containing about 53 gallons and 834 tons of diesel fuel oil in bulk amounting to 5,874 barrels.

Total arrivals of gasoline at Tsingtao from America on American ships for Mitsubishi Shoji Kaisha during February amounted to 69,988 drums or approximately 3,709,364 gallons. It is estimated that this gasoline total is more than all the oil companies including British and Japanese sold in this area during 1940.

The 834 tons of diesel fuel oil imported represents a small amount in comparison to total imports during 1940. Last year Japanese interests imported 13,241 tons of diesel fuel oil compared to 3,941 tons in 1939. Two oil storage tanks with a capacity of 3,000 tons each were completed for Mitsubishi Shoji Kaisha last year and have been used to store the recently arrived oil.

As far as can be ascertained neither the gasoline nor diesel fuel oil were assessed duty by the Chinese Customs and it is therefore presumed that the shipments were destined for military and naval use. Very little diesel oil is sold commercially at Tsingtao. Another fact pointing to the military character of the shipments was that the American ships were immediately given a berth at No. 3 Wharf upon arrival. No. 3 Wharf is not open to Third Power vessels and when not occupied by Japanese military transports, it is made available for Japanese ships only on a restricted basis, i. e., when all other berths at the No. 1 and the No. 2 Wharf are in use.

[Here follows explanation of lack of shore leave for crew due to Japanese military restrictions.]

Respectfully yours,

Paul W. Meyer
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