893.6363/6–2849: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Douglas)
2246. Deptel 2183 June 24, Embtel 2485 June 28. Dept has informed major US oil companies its natural wish any contracts entered into north China be short rather than long term. It must be remembered, [Page 1019] however, that small US concerns might enter bidding and thereby produce competitive situation resulting in major US companies and presumably Anglo-Iranian being forced to extend contract period in their bids.
Re ur final para Dept has not and can not place any obstacles in path Chi Nat Govt utilization its own funds for avgas or other supplies it deems necessary in conduct its military operations. Brit Emb Wash, has been so informed.