893.6363 Manchuria/136: Telegram

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

27. 1. On February 6, Kurusu74 stated to Sansom of the British Embassy that the foreign oil companies were still objecting to the monopoly as such and were not attempting to make business arrangements within the monopoly. He believed this to be arguing in circles as the monopoly plan would doubtless be carried out. He advised the foreign oil companies to discuss the matter purely on a commercial basis leaving legal aspects to be discussed by the Government.

[Page 880]

2. Sansom replied that, although he did not know if the foreign oil companies had reached a final decision, he had gathered from their representatives when he last saw them that if the Manchurian authorities carried out the monopoly scheme the foreign oil companies could see no alternative as a purely commercial proposition except to dispose of their investments in Manchuria.

3. The above reply of Sansom was prepared beforehand at a meeting of the special representatives of the foreign oil interests.

Repeated to Peiping.

Grew
  1. Saburo Kurusu, director of the Commercial Affairs Bureau, Japanese Foreign Office.