FOREIGN RELATIONS, 19 3 4, VOLUME III



Japanese Government. Embassy's telegram of December 18 to De-
partment states inter alia "Foreign Office prefer that Clive and Grew,
or any high ranking officials of the Embassies, should make an early
visit at the Tokyo Foreign office very much as outlined by Grew" (see
paragraph 6, your 274, December 13, 2 p. m.); that Foreign Office
is of the opinion that, if, in discussion with Embassy officials, the
Japanese Government remains adamant in its position, it would not
be wise to bring the special representatives of the oil interests into
direct contact with the Japanese Government; that Foreign Office is
apprehensive of any threat being advanced by the oil interests to the
Japanese Government if British, American, and Dutch interests are
not agreed beforehand that such a threat can eventually be satisfac-
torily implemented; that Foreign Office is, nevertheless, prepared to
authorize Clive to state, in his discretion, at conclusion of proposed
discussion, if Japanese attitude makes such suggestion feasible, that if
Japanese officials desire to discuss the matter with the special repre-
sentatives of the British oil interests now in Shanghai, the British
Embassy would undertake to so inform them.
  2. Department suggests that you confer with your British colleague
with a view to obtaining a detailed understanding of the views of the
British Foreign Office and of the exact procedure it now envisages.
If, thereafter, you continue of the opinion as expressed in para-
graph 6 of your 274, December 13, 2 p. m., and if the American oil
interests so desire, you are authorized, provided your British colleague
takes similar action, to proceed along the lines suggested by you in
paragraphs 6 and 8 of your telegram under reference.
  3. Inasmuch as officials of the Japanese Government have intimated
that future governmental representations should include more concrete
evidence, and presumably statistical data, in regard to the economic
burden which the Petroleum Law would place upon foreign oil inter-
ests, which evidence the oil interests, if so inclined, could best supply,
and because of other factors in the situation, the Department continues
of the opinion that it would be advantageous for special representa-
tives of the oil interests to confer, directly, with Japanese officialdom.
Department, however, leaves for joint decision by you and by your
British colleague the question whether mention should be made, in
your contemplated discussions with Japanese officials, of the special
representatives of the oil interests now in Shanghai.
   4. Department is informing London Embassy in above sense, for
 communication to Foreign Office.
   6. Report action taken by telegraph.
                                                              HULL



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