893/50 Recovery/9–2848: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

2098. ReDeptel 1353 to Embassy, repeated Shanghai by Embassy September 23. If two American oil companies pool stocks aviation gas now in China they can supply commercial airlines which they are currently supplying until November 15 if no deliveries are made to CAF. In order to supply CAF and prevent possibility of requisitioning commercial airlines supplies, it is suggested that Air Force offer to loan CalTex tanker load of aviation gas ready for shipment US Gulf October 11 be accepted. Arrival of this tanker would not relieve critical supply position of CAF during October.

Is it possible for SCAP to make temporary loan to oil companies of approximately 8,000 tons aviation gas, which is amount CAF state they urgently require, to be replaced out of the October 11 shipment. If above suggestion feasible believe that arrangements would be facilitated by direct contact with head offices in New York.

Shell is programmed ahead to supply their share of commercial airlines for several months. Have had specific advice from London that additional supplies cannot be made available for CAF and if stocks are requisitioned they will not be able to supply commercial airlines.

Repeated Nanking 1599.