893.50 Recovery/9–2048: Telegram

The Acting Secretary of State to the Ambassador in China (Stuart)

1353. Advised three major oil companies agreed pool avgas stocks China keep essential planes flying. Local reps oil companies believe stocks now China and en route adequate essential needs Oct and [Page 286] into early Nov depending volume CAF actual requirements. (Ur 1725 Sep 20.)

Preliminary investigation reveals SCAP loan not favored. Air Force as alternative cooperative measure will loan CalTex tanker load avgas ready shipment US gulf Oct 11, arriving China month later. Contact companies and advise Dept if pooled stocks and anticipated receipts adequate meet essential needs Oct and part Nov.

Suggest Emb request air component advisory group maintain extraordinarily careful continuing check estimated monthly consumption CAF reporting any major variation from previous estimates to Dept.

Shipments West Coast complicated oil workers strike which cancelled departure CalTex tanker Sept 20.

Commerce has granted supplemental third quarter avgas quota 167,000 barrels, fourth qtr quota exceeding 200,000 bbls indicated. Dept continuing efforts expedite commercial shipments. Will keep Emb informed. Rpt Shanghai.