FOREIGN RELATIONS, 1934, VOLUME III



I stated to Orde that I had no authority to speak officially, but that I
thought it might be helpful if we talked informally.
   Orde remarked that the British oil industry is unified and that
therefore the British are not faced with the problem which he under-
stood exists in the United States, of securing concerted action within
the industry; he stated that the British oil concerns are already in a
position to take effective measures to meet the situation, although they
would naturally first assure themselves that such measures as they
had under contemplation would not be injurious to British policy and
national interests. I said that the circumstances are different in the
United States, but that it was my understanding that the American
petroleum industry is well organized.
  After further conversation, Orde stated that the British Govern-
ment would regard with favor concerted action between the British
and American oil concerns on the following conditions:
       1st. Any measure that may be agreed upon should be water-
    tight or at any rate effective.
      2d. No formal action shall be required of the British Govern-
    ment.
      3d. The situations in Japan and in Manchuria are to be dealt
      with as two parts of the same problem (in other words, any
    measure to be taken shall be applied to both areas or not at all).
  Orde, who is by temperament extremely cautious, nevertheless
showed quite plainly that he is eager to have the British and American
oil concerns place themselves in a strong position vis-au-vis the
Japanese. He seemed doubtful of the wisdom of making in the present
circumstances a further official d~marche at Tokyo. He said that the
British Government and oil interests have not conclusively decided
that any measure of the foregoing character should be applied as soon
as agreement thereon can be reached, but that they believe that it
would be advantageous to give the oil interests freedom to take action.
He thought that if any effective private measure can be devised by the
oil interests of the three countries concerned, a real and effective basis
would be laid for further official representations."
                                                         BINGHAM

894.6363/139: Telegram
   The Secretary of State to the Ambassador in Japan (Grew)

                          WASHINGTON, November 28,1934-5 p. m.
  197. Your 257, November 24, 10 a. m., and 258, November 24,3 p. m.
Message contained in your 258 was immediately transmitted to Stand-
ard-Vacuum Company which yesterday sent representative to
Washington. Representative informed Department orally that, pro-
vided Standard-Vacuum is prepared to take similar action, Shell
interests in London are prepared to follow the plan referred to in
paragraph 6 of your 257. Representative stated Standard-Vacuum
considers such action advisable and will so instruct its Yokohama
office provided Department agrees.



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