893.6363/5–2149: Telegram
The Consul General at Tientsin (Smyth) to the Secretary of State
[Received May 23—12:51 a. m.]
344. Reourtel 280, April 29 and previous on oil situation. White, manager Texaco here, reports Communists recently showing much interest in obtaining greases and lubricating oils for railways which evidently running short these items. Communists have repaired and now have in operation much rail mileage not running prior Communist occupation. White says yesterday local Communist government purchasing department which buys for railways, public utilities, government, industries, etc., approached him for greases and lubricating oil for South Manchurian railways; they gave immediate requirements: greases and lubricating oil about 15,000 drums initial order; they will provide foreign exchange and import permits. White says purchase department also showing interest in motor gasoline, as their armies may be running short.
White requests Texaco connection this information be kept confidential.
ConGen suggests this might be opportunity to put into effect policy suggested Deptel 71, April 13,32 that quantities oil products supplied Communists should not exceed and preferably be somewhat lower than normal civilian requirements. To be effective this policy should be followed by all oil companies.