Evening star., 1934-10-24
j. s. AND BRITAIN
UNITE IN PROTEST
Test of 0pen.Door Policy
Nears as Japan Imposes
Oil Monopoly.

(copyrisht. 1884. by the Associated Press)
TOXIC, October 24.-America and
Great Britain have aligned against
Japan in a conflict of interests pro-
viding the first test of whether the
'open-door" policy will be maintained
by Manchoukuo, it was learned today.
The controversy concerns the oil
monopoly in Manchoukuo. with West
ern commercial interests alleging a
violation of their treaty rights.
American and British oil companies.
chief among them the Standard Oil
Co. Of New York and the British
Asiatic Petroleum Co., face an inten-
sive struggle for existence in Man
choukuo as the government there pre-
pares to establish a state oil monopoly,
No Protest Made.
Although the United States Gov
ernment has made no official protest
nor any diplomatic representations. 1t
was learned the American and British
embassies for three months have been
discussing the monopoly project with
the Toxic foreign Office.
They are seeking information on the
monopoly. details of which have not
been announced. and are intimating,
In a friendly and informal manner,
the Anglo-American conviction that
such a monopoly would undermine the
whole principle of the open door," es-
pecially violating article 3 Of the nine
power treaty.
American and British oil men are
convinced their companies, which sup
ply 80 per cent of the refined oil
market in Manchoukuo. will be forced
to surrender a substantial share of
their business to japanese competitors
under the monopoly set-up.
II Washington and London heed the
latest urgings Of the oil companies
and thus far they have clearly shown
q disposition to go to bat for their
nationals on this issue-a definite dip
lomatic conflict may develop shortly.
Monopoly Due Soon.
Manchoukuo officials informed rep
resentatives of the Standard Oil Co.
Of New York, the Texas Co. and the
Asiatic Petroleum Co. that the monop-
oily shortly will be inaugurated.
According to the plans outlined, the
Manchuria Oil Co. will purchase from
foreign countries the crude oil for its
Dairen refinery, plus whatever refined
oils the market requires beyond the
output of the Dairen and Fushun re-
fineries. The effect will be the elimi-
nation of foreign countries as dis
tributors and retailers in the Man
churian oil market.
The monopoly plans to take over
foreigners marketing and storage in
stallations and recompense them
The Standard and Asiatic Petroleum
asked their governments to protest
energetically to Japan. They con-
tend the monopoly, in addition to the
open door angle, violates several
pledges of high spokesmen of the
Japanese and Manchoukuo govern
ments since 1882. The Anglo-Amer-
leans charge the Japanese government
Itself Is a party to the violations be-
cause the Southern Manchurian Rail-
road holds 40 per cent of the Man
churia Oil Co. stock and the Japanese
government owns so per cent of the
railroad stock.
Defense Basis of Plan.
The monopoly is part Of the jap
enese Nays plans to dominate the
economic development OF Manchoukuo
and control the empires oil supplies
from the standpoint of national de-
fense. Opponents of the plan point
out KeiZaburo Hashimoto, president
of the Manchuria Oil Co. also is
president of the Nippon Oil Co. and
a brother-in-law of Gen. TakaShi
Hishikari, Japanese Ambassador at
Hsinking and commander in chief of
the Japanese Army in Manchoukuo
simultaneously the Anglo american
Interests are conflicting with the Jap
anese government as result of the
latter's campaign rigidly to control
the oil business in Japan proper.
The Standard Oil Co. of New York
and the British Rising Sun Petroleum,
subsidiary of the Shell interests. con-
tend the japanese government is
allotting them unfavorable sales
quotas under the new oil-control law
and that the japanese government
insists that Gil companies store in
Japan supplies equal to a half-year's
sales, insuring large stocks available
to the government in the event of
war. The Anglo-Americans thus far
have declined to comply and the
issue Is deadlocked.