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Affairs and intimated that the Foreign Office expected that inquiries would be made by the respective Embassies on the subject. The Department will therefore probably be approached by the Standard Oil interests with a request that the Embassy make representations requesting a settlement of the Korean quota question in the light of the assurances referred to above.

2. The assurances do not specifically refer to Korea but the Foreign Office has never denied that Korea is included therein. The Embassy therefore perceives no reason why such representations should not be made.

GREW

894.6363/316 : Telegram The Acting Secretary of State to the Ambassador in Japan (Grew)

WASHINGTON, May 27, 1937–6 p. m. 73. Reference your 136, May 24, 7 p. m. The Standard-Vacuum Oil Company has informed the Department that, in the event that the company does not receive an answer from the Foreign Office this week in regard to the Korean oil quota problem, the company and the interested British oil company plan to submit a statement of their position to the Foreign Office for reference to the Minister for Foreign Affairs. The company has asked the Department to authorize the Embassy to make representations to the Japanese Foreign Office in regard to settlement of the Korean oil quota question in the light of the assurances given by the Foreign Office in January of this year.

Inasmuch as you state in paragraph 2 of your telegram under reference that the Embassy perceives no reason why such representations should not be made, the Department authorizes you to make representations and leaves to your discretion the form and manner in which they shall be made.

This authorization is of course contingent upon the British Embassy being prepared to make similar and concurrent representations on behalf of the interested British oil company.

Please keep the Department informed by telegraph with regard to action you may take in the matter.

WELLES

894.6363/320 : Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, June 1, 1937–5 p.m.

[Received June 1—8 a. m.] 142. Department's 73, May 27, 6 p. m. Under date of May 29 the oil companies received from the Foreign Office a fairly satisfactory reply in the form of an aide-mémoire in regard to the Korean oil quota problem and have referred the reply to their principals for consideration. Under the circumstances the Embassy does not consider it necessary at the present juncture to take action under the Department's authorization. The Standard interests concur in tnis view.

GREW

893.6363 Manchuria/299 : Telegram

The Secretary of State to the Ambassador in Japan (Grew)

WASHINGTON, June 12, 1937–4 p. m. 81. Your 135, May 24, 6 p. m. The Department concurs in the view expressed in paragraph 2 of your telegram. You are authorized to proceed in the manner and under the conditions set forth in the Department’s 64, April 22, 2 p. m.

HULL

893.6363 Manchuria/303: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, July 2, 1937–4 p. m.

[Received July 2–6:20 a. m.] 175. Department's 81, June 12, 4 p. m., American oil claim. Informal and oral representations made today and Consul at Mukden instructed to proceed in accordance with Department's 64, April 22, 2 p. m.

GREW

893.6363 Manchuria/304 : Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, July 14, 1937—noon.

[Received July 146:20 a. m.] 198. Embassy's 175, July 2, 4 p. m., American oil claim. Standard Vacuum Oil Company reports that Hsinking authorities are now willing to authorize Monopoly Bureau to negotiate direct with oil companies on a commercial basis for lump sums including compensation in addition to assessed value of property. Although authorities desire to conclude an early settlement it was made clear that substantial reductions in companies offers are essential; and that such settlement is not conditional upon political issues.

In view of the foregoing Consul Langdon 35 reports that he has made no representations.

GREW

35 William R. Langdon, Consul at Mukden.

2056554-54447

893.6363 Manchuria/309 : Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, August 21, 1937–1 p. m.

[Received August 21–8:30 a. m.] 293. Embassy's 198, July 14, noon, Manchuria oil claim.

1. According to figures furnished by local government [sic] representatives of Standard Vacuum, that company's offer of settlement to Manchukuo authorities was United States $1,725,650 of which physical property represents $448,096; good will $101,439 and miscellaneous $298,115. Rising Sun, British company, submitted offer equivalent to United States $2,089,375 of which $728,440 physical property; $846,545 good will; and miscellaneous $514,390. The "miscellaneous” items cover repatriating of employees, retirement allowances and duty paid on stocks.

2. The counter offer of Manchukuo to the two companies was a lump sum of Manchukuo yuan 2,000,000 from which yuan 150,000 is to be paid Texas Company for good will, that company already having disposed of its physical property.

3. The Standard representative states that his principals in New York have been informed of the foregoing and will discuss with the Department question of future procedure. We have expressed no opinion to local representative, but we believe that there is still room for negotiation and that termination at this time of negotiation would be premature. In that belief the British Commercial Counselor concurs.36

GREW

REPRESENTATIONS TO JAPAN IN REGARD TO REGULATION OF

FISHERIES OFF THE COAST OF ALASKA 37

711.008 North Pacific/33a : Telegram

The Secretary of State to the Ambassador in Japan (Grew)

WASHINGTON, March 22, 1937—7 p. m. 51. 1. An Associated Press despatch from Tokyo published in local papers on March 17 reports that an official of the Department of Agriculture and Forestry made a statement on March 16 to the effect that it is the intention of the Japanese Government to encourage Japanese to fish for salmon off the coast of Alaska. Please telegraph if possible text in translation of the statement under reference.

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36 Further efforts by the companies to bring about a settlement of their claims were not effective.

For previous correspondence, see Foreign Relations, 1936, vol. IV, pp. 942 ff.

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2. Please keep the Department currently informed of developments in regard to the matter, which is receiving increasing attention in the United States.

HULL

711.008 North Pacific/34 : Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, March 23, 1937—7 p. m.

[Received March 23—9:25 a. m.] 94. Department's 51, March 22, 7 p. m.

1. The Associated Press despatch is substantially the same as press release given out by Domei on March 16 which was not published in local Japanese or English press.

2. The statement is based on reply of the Director of the Bureau of Fisheries to an interpellation at a committee meeting of the Lower House. The interpellation was apparently inspired by pamphlet published last month by the “Kaigo Gyogyo Shinko Kyokai” (Society of Oceanic Fishing Promotion) of Tokyo answering the protests of American and Canadian fisheries publications regarding the Japanese rights to take salmon in the northeast Pacific outside American and Canadian territorial waters.

3. Diet committee hearings are not published in the Official Gazette. The Embassy is endeavoring to procure the exact Japanese text of the committee hearings but so far without success and it is doubtful if the text can be obtained.

4. The views of the society mentioned in paragraph 2 were first published in the press on March 20 and 21 and reported to the Department in despatch No. 2328 on March 22 38 forwarded in pouch on March 22. The society defends the Japanese point of view in regard to the question of salmon fishing in waters adjacent to the territory of other countries. It contends that the Japanese because of their characteristic ability should base their livelihood upon the open sea and thereby contribute to human welfare; that foreign vessels in former days were accustomed to catch seals and whales off the coast of Japan; that the same international right should exist today; that the high seas are the common property of the people of the world and should not be monopolized by any nation or nationalities; that it is absurd to attempt to claim ownership of seals or salmon in the high seas; and that there is some reason in claiming that fishing by aliens in adjacent seas might cause unemployment through injury to domestic industries but that the conditions in any individual country should not be confused with the general principle of the freedom of the high seas. In an annexed list of recommendations the society requests the Japanese Government to investigate and deliberate on the following three points:

38 Not printed.

(1) That care must be taken for preservation and protection of the salmon which are of economic importance.

(2) That in conformity with the principles of international law full regard will be given for maintenance of public order and interest of other countries.

(3) That harmony must be maintained among the whole salmon fishing industries.

5. A distinct movement appears to have arisen recently among the Japanese fisheries interests to obtain a share of the salmon fishery industry of the eastern North Pacific. According to the statement summarized above, there [this?] is to be claimed as a matter of international justice and according to the recommendations it is apparently hoped to gain the right to the share of the industry through governmental negotiation and without unduly disturbing international relations or interfering with the rights and interests of the United States and Canada under international law. How it is hoped to accomplish this purpose is not explained.

GREW

711.008 North Pacific/35 : Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, March 24, 1937–4 p. m.

[Received March 24–5:45 a. m.] 96. Embassy's 94, March 23, 7 p. m. According to Domei report released last night, the Minister of Agriculture and Forestry stated at a meeting yesterday of the House Budget Committee in reply to interpellation on “Japanese fishing in the Alaska District” that "Japanese fishing outside territorial waters is permissible, although this matter is to be seriously considered because of international relations between Japan and the United States."

I have not been able to obtain Japanese text of the foregoing nor text referred to in telegram under reference.

GREW

894.628 Vessels/180

The Secretary of State to the Japanese Ambassador (Saito)

The Secretary of State presents his compliments to His Excellency the Japanese Ambassador and has the honor to refer to the

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