Word: manchukuo
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...Over in Manchukuo the same foreign oil firms are being squeezed, if possible, even harder. The Japanese Government owns half the stock of the South Manchuria Railway, which in turn owns 40% of something called the Manchuria Oil Co., 80% of whose stock is in Japanese hands. To this firm His Majesty the puppet Emperor of Manchukuo has been graciously pleased to grant a monopoly of petroleum sales within his realm. President of the Oil Monopoly is Mr. Keizaburo Hashimoto, brother-in-law of famed General Takashi ("Happy Sparrow") Hishikari, the Japanese Ambassador to Manchukuo and Commander-in-Chief...
Last week Japanese censors in Manchukuo held up for several days but finally passed news that early next year the Oil Monopoly will: 1) banish from Manchukuo the familiar cans of Standard Oil, Texas Co., Asiatic Petroleum Co. (Anglo-Dutch Shell group), every oil can in future to bear the stamp of the Japanese-controlled monopoly; 2) permit foreign firms to sell petroleum to the Monopoly only after it has purchased the entire produce of the South Manchuria Railway's shale oil plant and the new Dairen refinery...
Tokyo papers were forbidden last week to print the fact that patient, persuasive U. S. Ambassador Joseph Clark Grew and his British and Dutch colleagues of the diplomatic corps were protesting both the Japanese oil law and the Manchukuo monopoly. At the Foreign Office truculent Spokesman Amau refused even to discuss the former. "Japan," said he, "is a sovereign state...
...another thing," said Mr. Amau, polishing his glasses. "Manchukuo is an independent nation. When did we ever occupy Manchukuo?* Manchukuo is independent. Japan has recognized it as such and we cannot receive protests for Manchukuo. If the powers regard Manchukuo as still part of China, let them deal with China. Yes, they can appeal to China...
When Mr. Amau was reminded that Ambassador Grew and the other protesting diplomats accuse Japan of violating Article III of the Nine-Power Treaty of 1922 which guaranteed the "Open Door" to all Great Powers in what is now Manchukuo, Japan's spokesman triumphantly quibbled: "It is not then Manchukuo...