756D. 94/64: Telegram
The Consul General at Batavia (Foote) to the Secretary of State
[Received September 14—8 a.m.]
Reference is made to my telegram of September 5, 3 p.m. Kobayashi delegation arrived September 12 and was received with such warm courtesies that many people are of the opinion that the Netherlands Indies lost the first round. I am inclined to agree.
The negotiations have not begun except that Kobayashi intimated that the Director of Economic Affairs has not sufficient rank. The reply was to the effect that if the question does not arise officially he will be able to see the Governor General from time to time concerning important developments.
A memorandum from the Japanese delegation indicates that they will ask for 3 million tons of petroleum products per annum, availability guaranteed by this government. Kay informs me that his company is negotiating with the Japanese authorities at Yokohama, thus indicating that the question here will be political rather than commercial.
The substance of the Department’s telegram of September 11, 7 p.m. has been brought to the attention of the proper authorities. While they appeared to be very appreciative they were equally dismayed because of a report from the Netherlands Minister at Washington to the effect that American manufacturers had just cancelled this Government’s contracts for munitions of war.
[Page 116]There will probably not be any developments of importance before the end of next week.