EXHIBIT No. 462 [Letter from J. C. Morrell, Universal Oil Products Company Engineer, to L. J. Gary, attorney, Universal Oil Products, dated October 9, 1939] Mr. L. J. GARY, OCTOBER 9, 1939. 1014 First National Bank Bldg., Re: Japan Gasoline Company. Chicago, Ill. DEAR MR. GARY: Enclosed please find copy of letter of October 5th from Mr. Horie, of the Japan Gasoline Company, wherein he requests that we furnish him with literature and material necessary to oppose the Japanese patent to Mr. Tamaki, of the Mitsubishi Oil Company, which was recently published by the Japanese Bureau of Patents. You will note that Mr. Horie further points out that the information upon which Mr. Tamaki's patent application is based was obtained from Universal. This raises the question not only about the protection of the Japan Gasoline Company in matters of this kind, but also Universal's protection in foreign applications other than Japan. You will note from Mr. Horie's letter of April 25, 1938, relative to Mitsubishi, that he approved passing on information to Mr. Tamaki on this general subject. In fact, I do not know definitely of any instance where we have given information without this approval. At the present time we are conducting a course in hydrocarbon chemistry and petroleum technology for what appears to be Japanese industry generally as well as the Army and Navy, as represented by about twenty-five Japanese. This is done at the explicit request of the Japan Gasoline Company through Mr. Horie. Aside from other questions which might be raised in connection with this procedure, one might well ask what would prevent any of these individuals from filing applications on information given to them in foreign countries. I should appreciate it if you would give this matter some thought so that we may come to a conclusion on it at our next meeting. For example, it seems to me that while it may be desirable to give out information to the Japan Gasoline Company so that they may file under the convention date, we should not be called upon to give information indiscriminately to a large number of Japanese not connected with the Japan Gasoline Company or before we have had foreign protection. I discussed this matter in a general way with Mr. Horie, particularly raising the question as to how he could expect to protect the Japan Gasoline Company when he has authorized such a wide dissemination of information not only to the Army and Navy but to representatives of Japanese industries totally foreign to the oil industry. We are making a search with a view to assisting Mr. Horie in opposing the present patent and suggest that you also have a Washington search made with the same object in view. Yours very truly, UNIVERSAL OIL PRODUCTS COMPANY, EXHIBIT No. 463-A [Translation of confidential letter, dated April 8, 1930, from Shigemichi Miyoshi, of the Mitsubishi Trading Co., Tokyo, to the Mitsubishi Bank, Ltd., Tokyo] APRIL 8TH, '30. Confidential Messrs. MITSUBISHI BANK, LTD. GENTLEMEN: We beg to inform you that as orally stated yesterday by Mr. Tsutsumi to Mr. Suzuki of your Foreign Exchange Dept. and Mr. Nishibayashi of your Trading Dept. we are going to establish Mitsubishi Oil Company, Ltd., in Tokyo with the capital of ¥5,000,000 of which ¥2,500,000 is invested by Mitsubishi Company, Mitsubishi Mining Co. and Mitsubishi Trading Co. and ¥2,500,000 by the Associated Oil Co., San Francisco. (1st quarter amount of the capital to be paid up when established.) Therefore, will you please take care of the following items? I. That you issue a certificate for the balance of deposit of the promoters of the Mitsubishi Oil Co. in order to submit the examiner when the Company is established in Tokyo. II. That the sum paid up against the holding shares by Mitsubishi interests to be deposited with you; on which you pay due interest. III. That The Associated Oil Co. make payment against their investment to your correspondence Bank in U. S. A. or Your New York Branch which you keep in dollar currency as a deposit of the promoters of the Oil Co., so that its fund might be used against the purchase of materials and machinery from U. S. A. When the deposit is made in dollar, it should be immediately informed by wire to Your Head Office because its telegraph may be deemed important by the examiner for the proceedings for the establishment of the New Co. IIII. That you make necessary arrangement that the fund in dollars is disposable according to instruction of the promoters in case of need. V. That you pay due interest on the dollar fund. VI. That your Branch or your correspondence Bank in U. S. A. issue a receipt for each payment made by Associated Oil Co. or their several qualifying shareholders, and hand it to each, as there are only few numbers on their side. VII. That you charge no commission or fee against the said transaction. VIII. That you take similar steps also for the 2nd and subsequent payments for shares. I shall be very grateful to you if you will make a necessary arrangement beforehand with your branches in America in order to enable them follow the said procedure when we will definitely ask you again to carry on the matter after the approval of the Associated Oil Co. Thanking your favour in this connection, Yours very truly, SHIGEMICHI MIYOSHI EXHIBIT No. 463-B [Copy of letter dated July 18, 1930, from Shigemichi Miyoski to the Mitsubishi Bank, Ltd.] MITSUBISHI SHOJI KAISHA, LTD. (Mitsubishi Trading Company, Ltd.) HEAD OFFICE: MARU-NO-UCHI TOKYO, July 18, 1930. Messrs. The MITSUBISHI BANK, LTD., Tokyo. DEAR SIPS: Referring to your letter No. 278 under date of 12th April in connection with the payment of shares of the New Oil Company I am going to preside, I beg to inform you that the name of Associated's shareholders and their holding shares are expected as under: At par value of $50 per share and first payment shall be made at $12.50 per share. Yours faithfully, SHIGEMICHI MIYOSHI. Copy: Mr. D. D. MacGregor, Associated Oil Co.; Mitsubishi Trading San Francisco Office; Mitsubishi Trading New York Office. EXHIBIT No. 464 [Copy of letter dated July 18, 1939, from the manager of overseas division, fuel department, Mitsubishi Trading Co., Tokyo, to J. J. Lermen, Tokyo representative of Tidewater Associated Oil Co.] DEAR SIR: For your approval, we, hereby, submit a memorandum with reference to our conference of today. Our Mr. Mitani opened the discussion with a few preliminary remarks concerning many difficulties involved in the proposed undertaking, and, then, went on to elaborate on the outline of our program as indicated in our letter No. 4, dated July 18. The most significant point our Mr. Mitani raised in the course of his speech, was in connection with the Idemitsu Co. about which your Mr. Turner mentioned in our first conference. Mr. Mitani contended that while he has no doubt about the good business the Idemitsu Co. are enjoying in Shanghai as Mr. Turner says, it would be suicidal for such large and reputable business houses as the Mitsubishi to adopt the same method of operation; because it is clear that the sales of the Idemitsu & Co. are more or less at the mercy of such companies as the Shell and the Standard. Whereas the Mitsubishi which have always maintained good relations with the governmental agencies and are rather influential in such circles, will definitely be in a favorable position to engage in the marketing of petroleum products in future in competition with the other oil companies. Before concluding his speech, he stated on behalf of our Manager, Mr. Suzuki the following: (1) One of our fundamental policies with respect to the development of Chinese markets is that at all times we shall respect the interests of such companies as the Shell and the Standard which have been well established in those areas and that we only claim the share of business to we are entitled. (2) As one solution to the reassignment problems which have arisen due to the recent formation of a Sales Corporation, which is to handle the domestic sale of petroleum products in this country, our Fuel Department is contemplating transfering those men whose services are no longer needed in Japan Proper, to China, where we are short-handed; it is our policy to let as many employees as possible stay within the organization. By way of reply to Mr. Mitani's statements, Mr. Turner made the following remarks: (1) He is very much in doubt as to the practicability of our idea to sell the Associated's products in American dollars in the Shanghai areas. To this, our Mitani replied that the question Mr. Turner raised had never occurred to him, and that he would look into that matter very carefully for further consideration. (2) As to the building of bulk plants Mr. Turner asked Mr. Mitani in case the Associated built plants and the Mitsubishi sold the Associated's products on a long credit basis, who would be the actual operator in Shanghai, the Associated or Mitsubishi. To this, Mr. Mitani replied that he was not ready to answer the question, but inasmuch as this is an essential point he should like to take up the matter at a later conference. The conference came to an end by the following remarks of Mr. Turner; what the Mitsubishi are thinking of undertaking in Shanghai is, perhaps, the "toughest" prob'em we ever faced inasmuch as the territory involved is not in North China, which is Japanese 100%, but is in Central China, which is the melting pot of all kinds of international complications; the condition which is by no means temporary. Therefore, the plans under consideration would doubtless call for a genuine cooperation on both sides and also for a very far-sighted thinking. The meeting came to a close at 1:30 p. m. Yours faithfully, MITSUBISHI SHOJI KAISHA, LTD., Manager of Overseas Division Fuel Department. c. c. San Francisco, New York, Liquid Fuel Div.; Lubricating Oil Div.; Mr. R. S. Turner. EXHIBIT No. 465 [Signed copy of letter dated January 3, 1941, from Hokichi, Inouye, Mitsubishi Trading Co., San Francisco, Calif., to S. Takeuchi, Tokyo office] MITSUBISHI SHOJI KAISHA, LTD., Mr. S. TAKEUCHI, San Francisco, January 3, 1941. c/o Personnel Division, General Department, Tokyo. DEAR MR. TAKEUCHI: Further regarding my meeting with Mr. William F. Humphrey this morning, I write this separate note so that I may be able to give information on what was discussed in that meeting to other people who would likely take interest, in sending them a copy of this letter. Mr. Humphrey said that in his observation he had more reasons to give concern to the present state of political situation world-over and America's present relation with and possible future involvement in the crisis in Europe and Asia. He did not dwell long on the condition in Europe and America's future stake in same except to say that if war keeps going on every country in Europe and peoples in it will be impoverished and it will do no good to any people; and, we must expect a very "bad time" in business when every country and people will have lost wealth. I expressed that I recently noted with interest some press reports on proposals that are being advanced by several Senators and other groups of people that the United States should make a "peace" proposal to the belligerent countries in Europe and should at least move to sound out their attitudes toward making peace. I added that in my opinion of the situation, such proposal appears to be premature to be given even a consideration by the countries at war. Mr. Humphrey said that he was quite in agreement with my observation and would go further to say that after President Roosevelt's "radio chat" on December 29th in which he attacked the leaders of the Axis powers in most bitter terms as present and future enemies of America, it would be almost a foregone conclusion that the Axis leaders would not expect America as a mediator of peace. As for the strained relation between Japan and America, Mr. Humphrey expressed that he witnessed in his recent sojourn of several weeks in the East prior to the middle of December antagonistic feeling of the American people as being much stronger in the East than on the West Coast. He remarked that in common sense, the people might expect this undesirable sentiment to be stronger on the West Coast because of the geographical proximity to the Far East, but quite the reverse situation prevails at the present time; it might be attributed to the fact that the easterners are more ignorant of the situation in the Orient compared to the people on the Pacific Coast. He emphasized that he felt more keenly than ever that American sentiment toward Japan is adverse in his last trip to New York. The policies and expressions that have been taken of late in the last several months have been pulling the two countries apart wider and wider. He remarked in passing that there are always in any country in any period “Jingoists" and "war mongers" who go extreme enough to strain relations to ultimately bring war, which is most regrettable thing to humanity. During his stay in the East last month, he several times made trips to Washington and had occasions to exchange views with the high officials of the government. He found their views to be just as or more adverse toward Japan's activities in China and some quite "head strong". He feels that he has been doing his bit to improve sentiment toward Japan in the past and is continuing to do so all he can. He went on to say that he has told at very important meetings of business people in New York and the important government officials in Washington that his knowledge of Japan and her people might not be considered a very wide one, but he can say one thing with confidence and pride that the most important business account of his company, of which he is the president, in Japan for more than fifteen years has been more pleasant than any other association with the accounts in any country in the world, that is the House of Mitsubishi, headed by the Iwasaki families, which is one of the greatest and most representative companies in Japan. When Mr. Mitani and himself concluded a contract to operate an oil company on a 50-50 basis, the exchange rate was around $49, but a few years ago the exchange rate dropped to around $28 because of crisis after crisis that developed in the Orient. That drop in the exchange caused his company loss of somewhere around ¥1,875,000. Naturally the directors of his company and the stockholders gave a great concern. Later, Mitsubishi Oil Co. sent its Managing Director Hirai to America and as a result of his visit shortly thereafter the most happy arrangement in his long experience in business was effected by the Japanese company with which his company has been associated. From their own initiative, the sponsoring company of Mitsubishi Oil Co., Mitsubishi Trading Co., expressed that they could not see Associated Oil Co. take the entire loss caused by an abnormal political development and agreed to make loss good to the extent of some ¥875,000. It also had Mitsubishi Oil Co. put up some ¥870,000 in the spirit of cooperation and friendship for the mutual enterprise. Mr. Humphrey said that he has been repeating this story saying that this evidence of integrity in business was good enough for him to give confidence and trust to anybody. He has been saying to the listener just imagine if the experience was of a company in any other nation could he expect similar treatment anytime anywhere. He feels most fortunate to have the House of Mitsubishi as the partner of business in Japan and in the Orient to represent his company. At this point, he touched a little bit on the matter of outstanding credit to Mitsubishi. He did not, of course, know the exact figures offhand but he remembered that there was some $800,000 outstanding. As his people might have called our attention many times in the past, the management of his company has been quite concerned about the situation. He has twenty-four directors in the company and numerous stockholders, who would express their concern. Their argument is that may he and the company trust the House of Mitsubishi, could they place confidence in the group that is in control of Japan today. Credit control has been in effect for quite sometime in Japan and more rigid control might be expected in the future, which might bring an enormous loss to the company. Mr. Humphrey says that he has repeatedly been telling his people that when he has reason to trust and when there have been evidences for which he can place full confidence, he feels that Mitsubishi will not fail him; he feels that Mitsubishi will not fail to take care of him even in the worst case. In this regard, I took Mr. Humphrey's statement to imply that he has been quite severely criticized by the directors and stockholders in his company and he is being placed in a rather embarrassing position and he would appreciate Mitsubishi's cooperation at all times as heretofore. If we are to take Mr. Humphrey's sentiment toward Mitsubishi and statement on same to be sincere, our company should certainly work to further cooperate so as to maintain our mutual relationship as pleasant as it has been in the past. He also emphatically remarked that the appointment of Admiral Nomura to Washington has certainly been well received in official circles as well as business circles. In fact, some optimistic observers expect improvement and correction of the strained sentiment toward Japan. Mr. Humphrey thinks in the same way in his observation. He expressed that he could not understand why the long delay in the arrival of Admiral Nomura in this acute and most needed time. He feels that even a day counts. He remembered the days of Ambassador Saito, who contributed and saved many a times acute circumstances that came up in the Japanese-American relation. Ambassador Saito was always the life of the party in Washington in his days. He left many sad hearts in Washington. Japan and America need such a man as Saito today. It is certainly hoped that Admiral Nomura would live up to the expectation of the people. My reaction to this statement is that Mr. Humphrey's view might be a superficial one, but it is very pleasant to hear from a person who is supposed to know at least a little about the real sentiment of the more important groups of the American businessmen and government officials that the new appointment to the Japanese Embassy in Washington has been received with a favorable attitude. It is, of course, almost a common-sense knowledge on the part of the Japanese people today that even a superman cannot expect to improve and correct the deep-rooted adverse Ameri |