Department still feels that it would be advantageous for British
Foreign Office to be coordinator and central clearing point in this
matter.
  2. Department has been informed by British Ambassador here that
the Foreign Office's recent request through him for information from
Department was prompted by an intimation given to the press by the
Japanese Ambassador here that Japan might mediate between British
and American petroleum interests. So far as the Department is con-
cerned, there was and is no basis in fact for such an intimation. We
believe that the British Ambassador has already so informed the
Foreign Office.
  3. Department concurs in the thought of the British Government
favoring concerted action by British and American petroleum inter-
ests. Department has consistently expressed this view to the Ameri-
can interests concerned. WTe have suggested to them cooperation
among all American petroleum interests. We do not believe that
short of such cooperation or of definite restrictive action on the part
of the American Government effective restriction of petroleum exports
from the United States to Japan and Manchuria could be achieved.
This Government does not for the present feel moved to proceed in
the direction of such action and it does not look as though the oil
companies adversely affected are in position to take or to cause the oil
industry as a whole to take such cooperative action as might be effec-
tive. Whether the situation among the petroleum interests will de-
velop in that direction is a question on which we, at least, venture no
prediction.
  4. It is our understanding that, representatives of the various
petroleum interests directly involved with Japan having proceeded to
the Far East, the British and American companies desire that their
respective Governments pave the way for discussion by those repre-
sentatives with appropriate officials of the Japanese Government.
May it be understood that the British Ambassador and Netherland
Minister as well as the American Ambassador in Tokyo will be in-
structed by their Governments- to take appropriate action toward that
end? We assume that it is the view of the British Government that
no action other than such, that is, no new dimarche should be made to
the Japanese Government until the representatives of the petroleum
companies shall thus have had opportunity to confer with appropriate
officials of the Japanese Government.
  5. Department feels that there should be frank and full exchange
of views between the British, the Netherland and the American Gov-
ernments in relation to all phases of this matter and all steps envisaged
or contemplated; that there should be the best possible working under-
standing between and among the Governments and the oil interests
concerned; and that it should be realized and be constantly kept in



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