893.6363/12–2149: Telegram

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

5331. Caltex and Stanvac sent direct by commercial radio to their New York offices information to effect three oil companies approached [Page 1036] by Chinese POL Corporation acting for Foreign Trade Corporation with request for storage 9,000 tons diesel oil at Tsingtao for maximum 3 months’ ex-cargo 11,000 tons by Foreign Trade Corporation in Trinidad for delivery Shanghai. Understood fair storage and filling charges in local dollars will be paid on terms to be agreed on. As tanker eta68 December 31, decision urgent and reply by December 24 asked. While realizing fully drawbacks inherent in proposed scheme, three company managers, Shanghai, felt it essential cooperate and have so recommended.

In original messages to head offices, Caltex [and] Stanvac managers “indicated refusal to extend cooperation might have most unfortunate consequences and we believe you will understand what these may be”.

Orally, Stanvac manager said, and Caltex manager agreed, Chinese Communists intimated Shanghai managers three oil companies would be held personally responsible for any failure or refusal to cooperate on part of their respective head offices.

McConaughy
  1. Estimated time of arrival.