893.6363/7–3049: Telegram
The Consul at Shanghai ( McConaughy ) to the Secretary of State
[Received July 30—6:41 a. m.]
2970. Shanghai Government now proceeding with implementation proposed distribution arrangements motor gasoline reported ConGentel 2752, July 13 and also planning institute very large consumer tax on sales to be collected for account Government by oil companies distributing Government-owned product.
Local oil company representatives would appreciate guidance their principals re attitude to be adopted by them connection proposed marketing arrangements mogas and are wiring them direct.
Local view is that principals should instruct them continue stress to local government fact that rationing price control can afford all safeguards required for sales mogas and that distribution under proposed monopoly arrangements undesirable every way but, in view unusual local situation, authorize representatives cooperate fully with authorities in connection disposal existing stocks under proposed marketing plan but at same time requesting their representatives reserve right withdraw from plan at any future date when new shipments to China are contemplated should this seem desirable that time.
[Page 1021]Please advise Washington representatives Stan Vac, Caltex for information their New York offices.