892.6363/131

Memorandum of Conversation, by Mr. Alger Hiss, Assistant to the Adviser on Political Relations (Hornbeck)

Participants: Mr. George S. Walden, Standard-Vacuum Oil Company
Mr. Stanley K. Hornbeck
Mr. Alger Hiss

Mr. Walden called upon Mr. Hornbeck late in the afternoon and said that he had come down to Washington to explore further the question of oil shipments from the Netherlands East Indies to Thailand. Mr. Walden said that from the commercial point of view he would prefer to refuse to sell any oil to Thailand unless the Thai Government would permit the companies to resume their regular distribution [Page 153] business—a business which has been prohibited to them since July 1939. He said that he was aware that the British Government and the Shell Company might for political reasons take a different attitude. He said that in his opinion the wisest policy for both Shell and Socony Vacuum to follow was for both of them to inform the Thailand Government that they would be glad to resume commercial operations in Thailand and on the old basis. Mr. Walden said that he intended to press this point of view upon the Shell Company whose representatives he would see while in Washington and upon Mr. Loudon, the Netherlands Minister, whom he was to see the following day.

Mr. Hornbeck informed Mr. Walden that as far as he was aware this Government would have no objection to Standard Vacuum pursuing the course suggested by Mr. Walden.