490.419/7–1950
The Secretary of State to the Secretary of Defense ( Johnson )
My Dear Mr. Secretary: The receipt is acknowledged of your letter of July 19, 1950 in which you note the concern of the Joint Chiefs of Staff about the question of controls on sources of supply of petroleum products for Communist China, North Korea, and the USSR maritime provinces, and recommend representations to the British Government to obtain an embargo on all petroleum products to these areas.
On June 29, 1950 the Department of State requested United States oil companies to suspend all sales or shipments for the Chinese mainland of all types of petroleum products which these companies control. This request was based upon the need for making certain that such shipments would not directly or indirectly support the North Korean military forces. The companies promptly agreed to comply with the request, and the Department is satisfied that they understand and are carrying out the objective.
On June 30, 1950 the Department informed the British Embassy in Washington of this action and suggested that the British Government consider making the same request to British oil companies.
Following consultation by representatives of the Department with representatives of the British Government here and in London, the British Foreign Office in London on July 18, 1950 issued a public statement on this question, the relevant portion of which is quoted hereafter:
“This question is now academic in view of the fact that the British service departments have found it necessary to take over all stocks of [Page 657] British oil in the theatre (from which deliveries to China are made) for their own requirements in connection with the action being taken in support of the Security Council’s resolutions on Korea.”
The Department of State is satisfied that this action by the British Government has resulted in the cessation of all petroleum shipments to Communist China from British-controlled sources.
In order to provide a basis for more effective control, urgent steps are being taken to obtain multilateral support for the embargo of all petroleum products to Communist China, North Korea, and Soviet Far Eastern ports.
Sincerely yours,