The Archive · 1941

Sources of Supply

Other sources from which Japan Obtains oil are the Netherlands Esst Indies. After several months of negotiations, a new agreement was offered late last year to the Japanese through which they would increase their takings of oil from this source to 1,800,000 tons annually, from 500,- 000 yearly. The Japanese had de-mended a larger percentage of the output of the islands and for this reason would not accept the offer. Meanwhile, the Japanese Government is taking the oil in accordance with the agreement.

Under the old arrangement the companies delivered the oil to the Japanese, but the new contract provided that the additional oil would be made available to the Japanese at ports on the islands. Because of the lack of shipping facilities, the Japanese so far have not taken all that they were entitled to, but under the plan any deficiency in one month may be made up later.

Japan also is purchasing oil from Mexico and the Island of Bahrein.

Purchases last year from Mexico amounted to 760,000 barrels, compared with 189,000 in 1939. The amount bought from the Island of Bahrein ard Arabia is not known, but it is believed to be considerably larger than that from Mexico. Last year Jupan also acquired about 1,000,000 borrels from the Anglo-Iranian Oil Company, a company controlled by the British Government and operating in Iran.

Text read from the printed page and cleaned; old type leaves the occasional error.

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