693.113 (Manchuria) Petroleum/38: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received March 17—1:55 p.m.]
126. Department’s 66, March 14, 6 p.m. Detailed circumstances of refusal to accord similar treatment to American companies are embodied in Mukden’s despatch of February 21st82 which should reach the Department in the next few days.
American companies indicate intention to abandon efforts to import fuel similar to Japanese because to degrade the quality of their kerosene sufficiently so that it will fail to pass the burning test and be admitted under item 506 would adversely affect the market and also because in practice the burning test offers too many opportunities for discrimination in enforcement.
It is now suggested effort be made to obtain following interpretation of tariff items: that any refined mineral oil regardless of trade name which has a gravity of 30 degrees Baumé and over but which is not readily classifiable as subject to duty under item 482, 491 or 497 should be assessed duty under item 495. Item 490 applies to gasoline, 491 to liquid fuel, 497 to lubricating oil and 495 to kerosene. Representatives of the companies have referred this solution to their Shanghai head offices with suggestion that it be submitted to the Dairen Commissioner of Customs and/or the Hsinching authorities.
If representations are to be made in Tokyo the Legation believes that they should be along the lines outlined Legation’s 106, March 2, 2 p.m. paragraph 3 [1]. British Minister’s action consisted of a cable to British Legation [Ambassador?] at Tokyo informing him of our contemplated action and suggesting possible desirability of similar representations. Copy of his cable was repeated to Foreign Office but no answer received.
I am also now informed by British Legation that British Consul General [at] Mukden refrained from expressing any opinion as to the desirability of representations Tokyo. Repeated to Tokyo.
- Not printed.↩