611.51G/23: Telegram
The Consul at Hanoi (Reed) to the Secretary of State
[Received February 1—8:20 a.m.]
10. Movement of American owned merchandise in Indochina. For the second time since the Japanese established control of reexportations from Haiphong, the Standard-Vacuum Oil Company and the Texas Oil Company have been refused the right of reexporting petroleum products, this time by a vessel chartered by these companies for that purpose and now en route to Haiphong, although in the case of the Standard-Vacuum Oil Company the reexportation permit had been granted previously and in the case of the Texas Oil Company the reexportation permit had been verbally promised.
On January 30 the French liaison officer with the Japanese mission informed the Standard-Vacuum Oil Company that the reexportation permit granted December 13 was being withdrawn upon Japanese insistence that there be no reexportations pending settlement of the [Page 51] whole question of transit cargo. January 24 the local manager of the Texas Oil Company was informed by the same officer that the company would not be granted the promised reexportation permission because a previous reexportation by that company had been transshipped at Hong Kong for Rangoon.
The above is but one more instance of the completeness of Japanese control in Tongking and it indicates the Japanese disregard of third party property rights. From conversations with usually well informed persons since my return to Hanoi, I gather the impression that the Japanese are impatient to have a settlement of the transit cargo question and will soon take steps to force a settlement which will make available to them such portions of the transit cargo as they desire and need, particularly the cargo at one time destined for the Chinese Government.
Sent to Cavite for repetition to the Department, Chungking, Pei-ping, Hong Kong, Shanghai, Canton.