CO129-541-12 Application by Soviet Oil Company Union Petroleum Trust for permission to erect an oil tank... 14-11-1932 - 28-3-1933 — Page 42

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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.