894.6363/299: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

265. Embassy’s 264, December 19, 6 p.m., paragraph 6.

1.
The local representatives of the oil interests have today asked that at least some preliminary diplomatic approach to the Japanese [Page 804] Government be made either in Washington and London or in Tokyo before the holidays—(a) because not having fulfilled the storage promises the foreign oil companies are in the position of lawbreakers and are liable as penalization to have their 1937 sales quotas reduced unless they are supported by diplomatic measures and—(b) because the anticipated approval by the Tariff Investigation Commission of the proposed revision of the petroleum tariff should be forestalled. Any discriminatory tariff revision as the Department is aware would be contrary to the oral assurances given the oil companies. It is expected that the 1937 quota will be allotted and the tariff revision examined within the next few days.
2.
I shall, however, take no action here without the Department’s authorization and unless the British Ambassador takes an approximately simultaneous and similar step. Clive informs me that he is cabling similarly and urgently to London tonight.
Grew