804.24/1572
Memorandum of Conversation, by Mr. Alger Hiss, Assistant to the Adviser on Political Relations (Hornbeck)
Mr. Walden telephoned from New York and said that his experts had now studied the mimeographed memorandum setting forth those [Page 278] petroleum products the export of which to Japan is prohibited.67 (This memorandum was sent to Mr. Walden at Mr. Acheson’s direction by Mr. Yost.)
Mr. Walden said that under the specifications set forth in the memorandum no crude could be exported from the Netherlands East Indies except for the so-called special Tarakan which is actually a natural Diesel oil and is always used in its natural condition without refinement. In addition, he said that he believed that no gasoline now being made in the Indies could be exported.
I told Mr. Walden of the message from Mr. van Karnebeek which had come in for him68 and he remarked that apparently the experts in the Indies had reached the same conclusion in view of the statement in van Karnebeek’s message that the export of crude oil would not be permitted.
Mr. Walden said that in view of the effect of our regulations upon the situation in the Indies he would not continue his plan to send a cable immediately to his representatives but would wait until he heard further from us as to the decisions of policy to be made by the Netherlands Indies Government.
Mr. Walden said that he hoped he could receive additional information from us soon as he must make necessary arrangements promptly.