893.24/944: Telegram
The Consul at Hanoi (Reed) to the Secretary of State
[Received November 6—10:05 a.m.]
29. Reference my telegram No. 27, October 31, 2 p.m.42 As a result of a final conference yesterday afternoon between the Government [Page 202] General, the representatives of the American oil companies and myself, the following settlement was reached: The oil companies may export all petroleum products except motorcar gasoline to Hong Kong or Manila, all automobile petroleum products to be purchased by the Government General under a verbal agreement that it will not be sold to the Japanese.
This arrangement, if enforced fully by the Government General, represents a highly satisfactory solution of what might have been a difficult matter. It is possible that neither the Government General nor the Japanese desire to antagonize unduly the large American interests involved particularly as similar petroleum products (including aviation gasoline) are included in the United States Far Eastern Trading Corporation stocks, which will be probably confiscated or requisitioned. In the meantime the Government General is investigating under the direction of the Japanese all cargo at Haiphong, the cargo to be divided ultimately into China Government and private cargo. This investigation will take at least another 10 days and at the end thereof the Government General will announce a policy vis-à-vis both classes of cargo.
Sent to Cavite for repetition to the Department, Chungking, Peiping, Hong Kong, Shanghai, Canton.
- Not printed.↩