756D.94/74: Telegram

The Consul General at Batavia (Foote) to the Secretary of State

1.
On September 25 the Japanese delegation presented an aide-mémoire to the effect that the Japanese Government intends to transfer from Tokyo to Batavia the negotiations concerning the purchase of Netherlands Indies petroleum products; that Mukai would be in charge thereof and that the Government of the Netherlands Indies was requested “to pay special attention to see the negotiations be speedily brought to a satisfactory end”. The local government replied that it had no objections to their contacting the representatives of the oil companies and suggested that this be done at once; that the delegation which came here uninvited about 2 weeks ago had thus far discussed only petroleum, that no agenda had been arranged without which it appeared doubtful whether useful results could be attained.
2.
Director of Economic Affairs told me today that the determination of this Government to resist all forms of aggression had not weakened but that he does not understand the attitude of the United States concerning embargoes against Japan and the failure of the [Page 155] Department to issue export permits covering munitions of war already contracted for. He emphasized the urgency of the need for munitions and said that the Governor General is telegraphing the Netherland Minister at Washington today concerning the matter.
3.
It is generally believed that the lull in the negotiations resulted from the desire of the Japanese to await the outcome of events in French Indochina and that if they are successful the Netherlands Indies and the Malay Peninsula will meet the same fate in the near future.

Repeated to Tokyo.

Foote