42
-2-
The Managing Directors in London of both Companies, one of
whom has lived for many years in the Far East, have been
consul ted. Each of them drew attention to the fact that the
establishment of the Soviet oil organisation in China has
already caused much unrest and disturbance in Shanghai where it
recently entered into the petroleum business in conjunction with
a Chinese Company, and stated that it is the invariable experience
of the British Oil companies referred to that at every trading
point where the Russians establish themselves a proportion of the
money obtained from the sale of oil is definitely earmarked for
propaganda purposes in the country concerned.
It appears that the site required for the Soviet oil tank
installation is in the Petroleum Harbour at North Point where
all the oil installations are placed. The Asiatic Company state
that they have for a long time been trying, but without success,
to obtain a lease of Government land for the extension of their
premises at North Point which are greatly congested, and although
the Russians are not applying for a direct Government lease, there
is no doubt that if their present application is granted the
Asiatic Company will feel aggrieved.