893.2553/12–2050
The Petroleum Adviser at the American Embassy in London (Willoughby) to the Department of State
No. 2954
Ref: London Despatch No. 1369, Sept. 20, 1950; and A–445, Sept. 30, 19501
Subject: Reports on Current Availability of Oil Supplies in China
As requested by the Department in the last referenced despatch, the Embassy has been attempting to obtain a more complete picture concerning the present availability of petroleum products in Communist [Page 685] China. Thus far, there has been very little information which the Foreign Office has been able to pass on, but Mr. Ramsbottom, the Petroleum Officer, has said that all intelligence on such matters is regularly exchanged with other agencies of the United States Government, presumably CIA. The Foreign Office has indicated, however, that it appears deliveries of oil into China have been very small and infrequent so that the country may be becoming low on petroleum stocks.
In a conversation with an official of the Shell Petroleum Company, it was learned that Shell has no knowledge of recent shipments of petroleum into China. The official commented, however, that China’s requirements for most petroleum products are now relatively small. Very little gasoline is needed since most of the automotive transport had been converted to charcoal burners. He commented that Shell still retained some stocks, in Shanghai, and the Communist Government had made no moves to requisition them. He was unable to state the quantities or the products. He indicated that these stocks were gradually being sold out and that with the proceeds it has been possible to meet the expense of maintaining Shell’s staff in China.
The Embassy will remain alert for any further news and pass it on promptly to the Department.
- Neither printed.↩