List of Papers

(Unless otherwise specified, the correspondence is from or to officials in the Department of State.)

THE FAR EASTERN CRISIS: JAPANESE POLITICO-ECONOMIC PENETRATION IN CHINA SOUTH OF “MANCHOUKUO”

Chapter I: January 1–April 16, 1934

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Date and number Subject Page
1934 Jan. 6 (401) From the Ambassador in Germany
Conversation with the Netherland Minister concerning a change in Japanese foreign policy envisaging more extensive control of the Far East, and developments toward that end.
1
Jan. 9 (21) From the Minister in China (tel.)
Report of general belief that an announcement will be forthcoming concerning plans for the establishment of Pu-yi as “Emperor of a Colonial Mongol Manchu Kingdom” on March 1; opinion that the proposed coronation is designed to bring the Mongols of Inner Mongolia under Japanese control.
2
Jan. 11 (640) From the Ambassador in Japan
Observations with respect to the political significance of the Japanese step toward coronation of Pu-yi as “Emperor of Manchoukuo.”
2
Jan. 11 (644) From the Ambassador in Japan
Conversation with the Soviet Ambassador concerning possible renewal of Soviet-Japanese negotiations for the sale of the Chinese Eastern Railway; Soviet Ambassador’s opinion that plans to establish “Manchoukuo” as a kingdom are for the specific purpose of eventual Japanese assimilation of North China and other adjacent territory.
3
Jan. 17 (42) From the Minister in China (tel.)
From Harbin, January 16: Japanese Consul General’s confirmation of report that Pu-yi will be made emperor on March 1.
4
Jan. 17 (2470) From the Minister in China
Résumé of observations of a Japanese diplomatic officer concerning the division of opinion among Japanese leaders with respect to Japanese ambitions in China.
4
Jan. 18 (2757) From the Consul General at Harbin to the Minister in China
Information concerning recent “Manchoukuo”-Soviet conversations preparatory to resumption of negotiations for the sale of the Chinese Eastern Railway.
5
Jan. 22 (12) From the Ambassador in Japan (tel.)
Report of repercussions arising from publicity given to an address delivered by Stanley K. Hornbeck, Chief of the Division of Far Eastern Affairs, Department of State, on “Principles of American Policy in Relation to the Far East” before the Ninth Conference on the Cause and Cure of War, Washington, D. C.
6
Jan. 22 (13) From the Ambassador in Japan (tel.)
Report of general belief that Germany, in view of her withdrawal from the League of Nations, may no longer maintain her former attitude of nonrecognition of “Manchoukuo”.
8
Jan. 22 (7) To the Ambassador in Japan (tel.)
Instructions discreetly to inform Foreign Minister Hirota that the spirit and letter of Hornbeck’s statements have evidently been subjected to distortion either in the process of bringing them to the attention of the Foreign Office or in the consideration of them by the Foreign Office.
8
Undated Address by the Japanese Minister for Foreign Affairs Before the Japanese Diet
Statement of Japan’s foreign policy with emphasis on her position with relation to the “State of Manchoukuo”.
(Footnote: Receipt of copy of statement from Japanese Chargé January 22.)
9
Jan. 22 Memorandum by the Consul and Vice Consul at Tsinan of a Conversation With the Chairman of the Shantung Provincial Government
Offer of General Han to furnish the United States concessions and military bases in Shantung as security in exchange for munitions of war in order to counteract further Japanese acts of aggression in North China.
(Footnote: Instructions from the Minister in China to the Consul at Tsinan, January 29, to inform General Han that the United States is not interested in his proposal.)
13
Jan. 23 (15) From the Ambassador in Japan (tel.)
Report of various conjectures in connection with the resignation, January 22, of General Araki as Minister of War and of his replacement by General Hayashi.
15
Jan. 24 (16) From the Ambassador in Japan (tel.)
Information that Foreign Minister Hirota was advised of the distorted report of Hornbeck’s address and that he agreed to make rectification.
16
Jan. 25 (17) From the Ambassador in Japan (tel.)
Advice that a correct report of Hornbeck’s address was published prominently in Japanese newspapers on January 25.
17
Jan. 25 (65) From the Minister in China (tel.)
Exchange of views with the U. S. Asiatic Fleet Commander-in-Chief (texts printed), agreeing that, in the light of the general political situation in China and conditions in the Shanghai area, the U. S. Marine force at Shanghai should not be withdrawn or reduced.
17
Jan. 26 (19) From the Ambassador in Japan (tel.)
Information that Hirota, in reply to an interpellation in the Lower House concerning Hornbeck’s speech, stated that the version published in Japan had been distorted, but that the American Ambassador had corrected the mistake.
17
Jan. 26 (656) From the Ambassador in Japan
Indication of aggressive aims of a certain group of Japanese military men as revealed in an interview between Consul General Davis and Lt. Gen. Kawashima, commander of Japanese troops in Chosen.
18
Jan. 26 (659) From the Ambassador in Japan
Observations on the Chinese Eastern Railway sale controversy, and general aspects of Soviet-Japanese relations.
18
Jan. 30 (483) From the Ambassador in Germany
Denial by Dr. Meyer of the Foreign Office of any present German intention of recognizing “Manchoukuo”; his general views on the Far Eastern situation.
22
Feb. 1 (21) From the Ambassador in Japan (tel.)
Substance of Hirota’s statement in the Diet, January 31, with respect to naval ratios and the questions of Manchuria and the mandated islands.
23
Feb. 3 (892) From the Consul General at Mukden to the Minister in China
Report of the general favorable change in sentiment of the people of “Manchoukuo” toward the new regime.
24
Feb. 8 (668) From the Ambassador in Japan
Observations concerning a renewed movement toward former Japanese aspirations for a Pan-Asiatic League through the use of propaganda pertaining to the supposed exploitation of Asiatic peoples by Western nations, and Japan’s role as defender of Asia.
26
Feb. 8 (669) From the Ambassador in Japan
Report of public announcement, January 20, of the forthcoming enthronement on March 1 of Pu-yi as emperor of “Manchoukuo”; observations on the various implications of the move and the future developments to which it may lead.
29
Feb. 8 (670) From the Ambassador in Japan
Analysis of recent developments in Soviet-Japanese relations, and report of foreign observers’ opinion that the possibility of avoiding armed conflict is greater than it was 6 months ago.
32
Feb. 13 Memorandum by the Chief of the Division of Far Eastern Affairs
Conversation with the Soviet Ambassador, who expressed the opinion that Japan does not at present intend to attack the Soviet Union in the spring as formerly rumored in both countries.
36
Feb. 15 Memorandum by the Chief of the Division of Far Eastern Affairs
Observations on U. S. policy of nonrecognition of “Manchoukuo”; opinion that there exists no real reason for either reconsideration or reiteration of the position taken by the previous Administration in 1932 and reaffirmed by the present Administration.
36
Feb. 16 (2542) From the Minister in China
Report of a conversation with certain Chinese officials, who expressed the belief that Japan will attack Russia but not immediately.
38
Feb. 16 From the Counselor of Legation in China
Memorandum of February 14 (text printed) of a conversation with Tang Yu-jen, Administrative Vice Minister for Foreign Affairs, concerning Sino-Japanese relations.
39
Feb. 21 (680) From the Ambassador in Japan
Report on German commercial interests in Manchuria; opinion that de jure recognition of “Manchoukuo” by Germany is not imminent, but that the German Government and others may find it convenient to deal directly with “Manchoukuo” officials through their consular officers in Manchuria, without raising the question of recognition.
42
Feb. 21 (682) From the Ambassador in Japan
Report of Japanese apprehension concerning American aid to Chinese aviation as indicated by various press reports and comments by Government officials.
44
Feb. 22 (2557) From the Minister in China
Information concerning Japanese proposals to Chinese authorities with respect to a policy of Sino-Japanese “friendship”; opinion that the Central Government may agree under certain conditions rather than invite Japan, by a policy of resistance, to sever North China completely from Nanking for the purpose of creating a subservient buffer state.
46
Feb. 23 (21) To the Ambassador in Japan (tel.)
Instructions to state to inquirers that the U. S. Government’s policy of nonrecognition toward “Manchoukuo” is in no way changed, notwithstanding news reports to the contrary.
51
Feb. 23 (691) From the Ambassador in Japan
Report of definite improvement in the Soviet-Japanese situation; progress toward settlement of the fisheries dispute and resumption of negotiations for the sale of the Chinese Eastern Railway.
51
Feb. 23 From the Counselor of Legation in China
Conversation with Marshal Chang Hsueh-liang, Vice Bandit Suppression Commissioner, concerning the present trend in Japanese domestic and foreign policy.
52
[Feb. 26] Memorandum by the Assistant Chief of the Division of Far Eastern Affairs of a Conversation With the British Deputy Under Secretary of State for Foreign Affairs
Discussion of Far Eastern problems of mutual interest to the United States and Great Britain, particularly the question of recognition of “Manchoukuo” by the powers.
55
Feb. 27 (101) From the Minister in China (tel.)
From Harbin, February 26: Report of the release of six Russian railway prisoners and assumption that the Tokyo conference will be resumed with respect to the sale of the Chinese Eastern Railway.
57
Feb. 27 (67) To the Chargé in Great Britain (tel.)
Instructions to inform the Foreign Office that the U. S. Government’s policy of nonrecognition toward “Manchoukuo” remains unchanged despite current newspaper reports to the contrary.
57
Feb. 27 (665) From the Ambassador in France
Affirmative reply of the Foreign Office (text printed) to an inquiry as to whether measures had been taken by the French Government toward protection of French interests in the Chinese Eastern Railway.
58
Feb. 28 (564) From the Ambassador in Germany
Conversation with Mr. Daitz, head of the Foreign Political Office of the Nazi Party, who, in view of a German press report concerning possible U. S. recognition of “Manchoukuo”, urged action toward that end on commercial grounds; advice, however, that Foreign Office position as reported in despatch No. 483, January 30, apparently remains unmodified by the comments of Mr. Daitz.
59
Mar. 1 From Mr. Hsieh Chieh-shih (tel.)
“Official” notification of the enthronement of Pu-yi as emperor of the state of “Manchoukuo”.
59
Mar. 3 Memorandum by the Chief of the Division of Far Eastern Affairs
Conversation with the Italian Ambassador concerning the question of nonrecognition of “Manchoukuo” in connection with recent developments in the Far East; mutual confirmation of unaltered positions of the United States and Italy on the subject.
60
Mar. 5 (16) To the Chargé in Guatemala (tel.)
Instructions orally to inform the Foreign Minister that the U. S. Government’s policy of nonrecognition of “Manchoukuo” remains unchanged.
61
Mar. 6 From the Chinese Chargé
Statement issued by the Chinese Foreign Minister at Nanking, March 5 (text printed), concerning the Chinese attitude toward the “Manchoukuo” regime.
61
Mar. 6 (42) From the Ambassador in Japan (tel.)
Information concerning the request of Mr. Pei Heng (Frank Ma), Third Secretary of the “Manchoukuo” Legation, for a visa to travel to the Philippines on a nonpolitical mission.
62
Mar. 7 (698) From the Ambassador in Japan
Quotations of various statements made in the present session of the Diet with respect to the Japanese mandated islands, occasioned by the possibility that relinquishment of the mandate might be demanded by the League of Nations, in view of Japan’s notice of intention to withdraw from the League on March 27, 1935.
62
Mar. 8 (27) To the Ambassador in Japan (tel.)
Advice that the Department does not desire that a visa be granted to Mr. Pei Heng in view of the controversial political question connected with the purpose of his visit to the Philippines.
65
Mar. 8 (700) From the Ambassador in Japan
Report on the various aspects of Soviet-Japanese relations and role of Foreign Minister Hirota in achieving adjustment of certain controversies. Memorandum, March 9 (text printed), of a conversation with the Soviet Ambassador in Japan concerning present status of negotiations for the sale of the Chinese Eastern Railway and the possibility of a Soviet-Japanese war.
66
Mar. 10 (903) From the Consul General at Mukden to the Minister in China
Receipt of communications from the “Manchoukuo” Foreign Office defining briefly the policy of the “Manchoukuo” government and inviting the foreign powers to enter into formal diplomatic relations with the new state.
72
Mar. 13 (658) From the Consul General at Mukden
Report of the first dinner given by a “Manchoukuo” official for the Consular Body and representative members of the foreign and Japanese communities.
73
Mar. 13 (7) From the Ambassador in the Soviet Union (tel.)
Receipt of inquiries from the Foreign Office with respect to negotiation of a U. S.-Soviet nonaggression pact; request for instructions as to the U. S. attitude in the matter.
74
Mar. 14 (11) From the Ambassador in the Soviet Union (tel.)
Conversation with Litvinov, Soviet Commissar for Foreign Affairs, who was told upon inquiry that there was no evidence of U. S. inclination to propose a nonaggression pact between the United States, the Soviet Union, Japan, and China, or to extend recognition to “Manchoukuo”.
74
Mar. 15 (122) From the Minister in China (tel.)
Request for Department’s views on the question of principle involved in the liquidation of the Liao River Conservancy Board; advice that the French Government holds that the dissolution of the Board constitutes violation of the conservancy agreement of 1914 and that protest should be filed by the consulates concerned, while the British Government holds that lack of protest at the proper time precludes any action at this juncture.
75
Mar. 16 (2591) From the Minister in China
Views of the chief of the Peiping Office of the Panchen Lama concerning the future of Inner Mongolia.
76
Mar. 17 (12) To the Ambassador in the Soviet Union (tel.)
Advice that the President’s position on negotiating a bilateral nonaggression pact with the Soviet Union is unchanged, and that he views with disfavor any nonaggression pact restricted to less than the whole group of powers having interests in the Pacific.
78
Mar. 19 (718) From the Ambassador in France
Report of the foundation of the “Banque Franco-Mandchoue” looking toward the financing of French activities in Manchuria.
78
Mar. 19 Memorandum by the Minister in China of a Conversation With the Chinese Vice Minister for Foreign Affairs
Discussion of the present status of Sino-Japanese relations.
79
Mar. 21 (25) From the Ambassador in the Soviet Union (tel.)
Conversation with Litvinov concerning a general nonaggression pact in the Pacific; Ambassador’s comment that the United States is not interested in any pact which excludes China, and is not prepared to recognize “Manchoukuo”.
82
Mar. 21 Memorandum of Conversation, by the Counselor of Legation in China
Conversation with representatives of the Foreign Office concerning reported strained relations between Japan and the Soviet Union and the possible danger of an outbreak of war between them.
83
Mar. 22 Memorandum by the Under Secretary of State
Inquiry of the Netherland Minister as to the position the Department would take, should the Japanese Government extend an invitation to the Diplomatic Corps to meet Pu-yi during his state visit to Tokyo.
85
Mar. 23 (714) From the Ambassador in Japan
Appraisal of the Soviet-Japanese situation and observations indicating that Japan has no intention of deliberately provoking a conflict in the immediate future.
85
Mar. 23 (L–240 Diplo.) From the Counselor of Legation in China to the Minister in China
Report of a conversation with Mr. Li-Sheng-wu of the Foreign Office concerning certain press reports (excerpts printed) indicating a possible reversal of U. S. attitude toward nonrecognition of “Manchoukuo”; Chinese desire for restatement of Department’s position on the question.
(Footnote: Information that the Counselor, later on March 23, informed the Chinese Foreign Office of the substance of the Hull-Hirota exchange of views, February 21 and March 3.)
88
Mar. 26 (38) To the Ambassador in Japan (tel.)
Instructions to report facts and comments in case Pu-yi should make an official visit to Tokyo and invitations are issued for functions in his honor.
91
Mar. 27 (67) To the Consul General at Shanghai (tel.)
Instructions relative to Japanese offer to settle certain American claims arising from the hostilities at Shanghai in 1932.
91
Mar. 27 (2617) From the Minister in China
Report of recent activities in Peiping of Mr. C. Araki, Diplomatic Officer attached to the Japanese Kwantung Army Headquarters, who called at several of the local American missions and requested information as to the location of all American mission property in Hopei Province.
92
Mar. 28 (911) From the Consul General at Mukden to the Minister in China
Receipt of communication from the Kirin Provincial Government concerning American claims for losses by looting; advice that the communication is noncommittal but constitutes as satisfactory a reply as can be expected, so long as recognition of “Manchoukuo” is withheld by the U. S. Government.
94
Mar. 28 From the Japanese Consul General at Shanghai to the American Consul General at Shanghai
Intention of the Japanese Government to give solatium to 19 American citizens and organizations for losses sustained in the Shanghai Incident of 1932 although the Japanese Government denies any responsibility in the matter.
95
Mar. 29 (2622) From the Minister in China
Résumé of a conversation with General Huang Fu, Chairman of the Peiping Political Affairs Readjustment Committee, concerning Sino-Japanese relations and conditions in China.
96
Mar. 30 Memorandum by the Under Secretary of State
Conversation with the Soviet Ambassador concerning Soviet-Japanese relations; his opinion that war is not likely in the immediate future.
96
Mar. 31 (87) To the Minister in China (tel.)
Department’s concurrence with French view concerning dissolution of the Liao River Conservancy Board; instructions to confer with French and British colleagues as to the advisability of joint protest to the Japanese Government.
97
Mar. 31 (662) From the Consul General at Mukden
Detailed report on the trend toward Japanese monopolization of trade in Manchuria.
98
Apr. 4 (151) From the Minister in China (tel.)
Request for clarification of Department’s instructions with respect to representations to be made in regard to the Liao River Conservancy Board issue.
105
Apr. 4 (94) To the Minister in China (tel.)
Clarification of Department’s instructions.
105
Apr. 7 Memorandum by the Under Secretary of State
Record of the Soviet Ambassador’s observations concerning conditions in “Manchoukuo” and Far Eastern affairs in general.
105
Apr. 11 (164) From the Minister in China (tel.)
Report of recent developments in Sino-Japanese relations; further indications of Japanese pressure to effect a “compromise” or policy of “friendship” with China.
106
Apr. 11 (2657) From the Minister in China
Comments of British Minister concerning the attitude which Great Britain would adopt in the event of war between Japan and the Soviet Union.
108
Apr. 16 (111) To the Minister in China (tel.)
Reminder that in the Department’s opinion the initiative is with the French in the matter of objecting to the dissolution of the Liao River Conservancy Board.
(Footnote: Report of German Government’s attitude that it will join but not take the initiative in the proposal.)
109
Apr. 16 (24) From the Ambassador in the Soviet Union
Report on Soviet-Japanese relations; account of continued preparation for war in the Far East and general belief among Soviet leaders that Japan will eventually attack Russia.
109

Chapter II: April 17–June 30, 1934

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Date and number Subject Page
1934 Apr. 18 (71) From the Ambassador in Japan (tel.)
Information concerning the announcement, April 17, by the Foreign Office spokesman, Eiji Amau, of Japan’s objections to foreign assistance to China.
112
Apr. 18 (180) From the Minister in China (tel.)
From Counselor of Legation Peck, Nanking, April 18: Conversation with Acting Foreign Minister concerning difficult decision facing China with regard to Japanese insistence upon reopening of through railway traffic with “Manchoukuo”; Legation’s view that Counselor should be instructed to say that the United States is not prepared to advise the Chinese Government in the matter.
113
Apr. 19 From the Chinese Foreign Office to the Chinese Legation in Washington
Text of informal statement issued April 19 in reply to the Japanese announcement of April 17.
114
Apr. 20 (184) From the Minister in China (tel.)
Further information concerning French views on the procedure for registering protest in connection with the Liao River Conservancy Board issue.
115
Apr. 20 (72) From the Ambassador in Japan (tel.)
Advice that the only certain method of obtaining a correct interpretation of Amau’s statement of Japanese policy of April 17 is to seek an explanation from Foreign Minister Hirota himself; indication that the Ambassador will not act unless instructed.
115
Apr. 20 (120) To the Minister in China (tel.)
Instructions to convey to Foreign Office Department’s attitude that it would be inappropriate to give the Chinese Government advice in regard to the question of through railway traffic with Manchuria.
(Footnote: Information that when this instruction was carried out, April 22, Dr. Wang Ching-wei, the Acting Foreign Minister, stated that if the Chinese Government did compromise on the issue, it would not do so in a way to disturb the principle of nonrecognition of “Manchoukuo”.)
116
Apr. 20 (54) To the Ambassador in Japan (tel.)
Department’s opinion that no action indicative of interest or concern should be taken at this time with regard to the Amau statement on Japanese policy.
(Footnote: Information that in similar instructions to diplomatic representatives in the Soviet Union and China, the Department requested reports on reaction, official and unofficial, in those countries.)
117
Apr. 20 (751) From the Ambassador in Japan
Opinion that the Amau statement of April 17 conveys the true attitude of the Japanese Government toward foreign activities in China, but that the Foreign Office, for diplomatic reasons, is maintaining a position such that it can deny official issuance of the statement. Information that Amau made a supplementary statement to the press, April 20, modifying the tone of the original statement but not altering the basic policy.
117
Apr. 21 (187) From the Ambassador in Great Britain (tel.)
Résumé of British press reaction to Amau’s statement of April 17; expectation that an official statement will be made in the House of Commons at an early date.
121
Apr. 21 (188) From the Ambassador in Great Britain (tel.)
Conversation with Sir John Simon, the Foreign Secretary, who expressed the hope that there might be an early U. S.-British exchange of views concerning the significance of Amau’s statement.
122
Apr. 21 (187) From the Minister in China (tel.)
Information that Great Britain is unwilling to retreat from the position previously taken in connection with the Liao River Conservancy Board issue.
123
Apr. 21 (73) From the Ambassador in Japan (tel.)
Advice that foreign observers now believe that the recent definition of Japanese policy was fully endorsed by Hirota and was precipitated by Japanese apprehension of foreign activity in China.
123
Apr. 22 (60) From the Ambassador in the Soviet Union (tel.)
Report of Litvinov’s comments concerning the Amau statement; his belief that the one way to stop Japan is to call on all powers interested in the Pacific for a joint protest.
124
Apr. 23 (190) From the Ambassador in Great Britain (tel.)
Report of Sir John Simon’s statement in the House of Commons, April 23 (excerpt printed), on the necessity of communicating with the Japanese Government in order to clarify Great Britain’s position, in the light of the Japanese statement of April 17.
125
Apr. 23 (156) To the Ambassador in Great Britain (tel.)
Information concerning Department’s attitude with regard to the Japanese statement, and instructions to inform Sir John Simon that the U. S. Government would welcome an early exchange of views in the matter.
126
Apr. 23 (157) To the Ambassador in Great Britain (tel.)
Information that the Japanese Ambassador has commented to the press that the Japanese statement should not be regarded as directed against the United States; opinion that such comments are designed to lull the powers into a passive attitude.
127
Apr. 24 (55) From the Consul at Geneva (tel.)
Information that Yokoyama, Japanese Consul General, made a statement to the press, April 23, outlining Japan’s Asiatic policy. General impression that it was addressed particularly to the League of Nations and prompted in part by developments in the League’s program of technical assistance to China.
127
Apr. 24 Memorandum by the Chief of the Division of Far Eastern Affairs
Résumé of certain facts which should be kept in mind in connection with consideration of a rejoinder to the Japanese Foreign Office statement.
128
Apr. 24 (125) To the Minister in China (tel.)
Advice that the Department will defer consideration of the Liao River Conservancy issue until information is received that the French desire to pursue the matter further.
129
Apr. 24 (55) To the Ambassador in Japan (tel.)
Instructions to obtain a copy of translation of text of the Japanese statement, as telegraphed to New York by Wilfrid Fleisher, New York Herald Tribune correpondent in Japan, and to inquire of Hirota as to the accuracy of the translation.
129
Apr. 24 (193) From the Minister in China (tel.)
Information as to Chinese press comment on Japanese statement of April 17.
130
Apr. 24 (196) From the Ambassador in Great Britain (tel.)
Report of personal views of Sir Victor Wellesley of the Foreign Office concerning the Japanese statement.
131
Apr. 24 Memorandum by the Under Secretary of State
Conversation with the French Ambassador, who was told, upon inquiry, that the Department has not yet taken a definite position with respect to the Japanese statement.
132
Apr. 24 To the Minister in Switzerland, at Geneva
U. S. position relative to the extent to which de facto relations may be permitted between foreign postal administrations and the Manchurian postal authorities without involving recognition of the existing regime in Manchuria; instructions to convey this information to League of Nations Advisory Committee.
133
Apr. 25 (30) From the Counselor of Legation in China (tel.)
Summary of Chinese official opinion regarding the Japanese informal statement of policy toward China.
134
Apr. 25 (200) From the Ambassador in Great Britain (tel.)
Foreign Office position that any suggestion for concerted consideration by the British and American Governments of the recent Japanese statement should not go beyond an exchange of views.
135
Apr. 25 Memorandum by the Secretary of State
Conversation with the Chinese Minister, who inquired as to the Department’s reaction to the Japanese statement and was advised that the Department was not prepared to make an official comment at present.
136
Apr. 25 Memorandum by the Under Secretary of State
Italian Ambassador’s advice that the Japanese Foreign Office confirmed to the Italian Ambassador in Tokyo that Amau’s recent statement represented the official Japanese attitude.
137
Apr. 25 (30) To the Consul at Geneva (tel.)
Instructions to withhold comment concerning the Japanese statement, to report developments and reaction, and to repeat instructions to Paris and Rome.
137
Apr. 26 (77) From the Ambassador in Japan (tel.)
Advice that there is no authoritative text of the Japanese statement inasmuch as the statement was first issued orally in Japanese by Amau to press correspondents and later “unofficially” in written English translation; opinion, however, that Amau’s statement was taken from an instruction approved by Hirota for transmission to all Japanese diplomatic missions for their guidance but was released without Hirota’s knowledge or consent.
138
Apr. 26 (57) To the Ambassador in Japan (tel.)
Receipt from the Japanese Ambassador of translation of Hirota’s instruction to the Japanese Minister in China; advice that Amau’s statement of April 17, as reported in Herald Tribune text, seems to be substantially a paraphrase of that instruction.
139
Apr. 26 (32) From the Counselor of Legation in China (tel.)
Indications that China’s spirit of resistance to Japan has been revived and strengthened by the belief that the effect of the Japanese statement of April 17 is to join the Nine-Power Treaty signatories with China as victims of Japanese treaty violation.
139
Apr. 26 (78) From the Ambassador in Japan (tel.)
Efforts to verify translation of Amau’s statement; receipt of communication from Hirota (text printed), endorsed by him as representing his true policy toward China, and purporting to be gist of Amau’s supplementary statement to the press of April 20.
140
Apr. 26 (79) From the Ambassador in Japan (tel.)
Confidential information that the British Ambassador under instructions sought a clarification of the Amau statement with special reference to the provisions of the Nine-Power Treaty and was told by Hirota that the statement failed to interpret correctly the policy of the Japanese Government.
141
Apr. 26 From the Chief of the Division of Far Eastern Affairs to the Secretary of State
Résumé of the Japanese situation, and opinion that the Amau statement of April 17 represented a disclosure of policy rather than a declaration.
141
Apr. 26 Memorandum by the Under Secretary of State
Conversation with the British Ambassador, who advised of his Government’s opposition to any concerted action in the Far Eastern situation, and read the instructions (text printed) which had been sent to the British Ambassador in Tokyo concerning British views on the Japanese statement of policy toward China.
142
Apr. 27 (195) From the Counselor of Legation in China (tel.)
Minister’s comments and views on the Japanese statement of policy.
143
Apr. 27 ((SC)EF37) From the Acting Secretary of the Navy
Request that all consular officers be instructed to furnish information with regard to Japanese shipping in order to detect any early indication of Japanese belligerent intentions.
144
Apr. 28 (61) From the Consul at Geneva (tel.)
Report of Secretary General Avenol’s views of League of Nations policy vis-à-vis the Far Eastern situation.
145
Apr. 29 From the Consul General at Canton (tel.)
Information that the Consuls at Canton have received for transmission a declaration by the Southwest Political Council addressed to the League of Nations and the Ministers of the signatory powers of the Nine-Power Pact, referring to Japanese statement of April 17 and urging that they discharge their treaty obligations.
147
Apr. 30 (84) From the Ambassador in Japan (tel.)
Amau’s announcement that no official clarification of Japanese policy in China will be issued as had been previously announced. Information that an aide-mémoire was presented to the Foreign Minister on April 29.
148
Apr. 30 (213) From the Ambassador in Great Britain (tel.)
Information that Sir John Simon, in answer to questions in Parliament, stated that an exchange of assurances between Japan and Great Britain on the principle of equal rights in China had been effected by friendly inquiry on the basis of the Nine-Power Treaty of 1922.
148
May 1 (64) From the Consul at Geneva (tel.)
Further information concerning the current League of Nations relationship to the Far Eastern situation, particularly with reference to Japanese allegations of political activities against Rajchman, head of League’s mission on technical assistance to China.
150
May 1 (85) From the Ambassador in Japan (tel.)
Conversation with the Soviet Ambassador, who commented upon the failure of the resumed negotiations for the sale of the Chinese Eastern Railway and his anticipation of further strained Soviet-Japanese relations.
152
May 1 (86) From the Ambassador in Japan (tel.)
Vice Foreign Minister’s comment in press interview upon the frank and friendly nature of the U. S. aide-mémoire of April 29, and advice that it will be answered in the same tone.
152
May 1 (61) To the Ambassador in Japan (tel.)
Substance of Secretary Hull’s background comments at a press conference, April 30, on U. S. aide-mémoire of April 29 to Japanese Government.
153
May 2 (176) To the Ambassador in Great Britain (tel.)
Instructions to compile an analytical report on the British Government’s attitude toward the Japanese statements relating to China policy from April 17 through April 30; also to report on the reaction in Great Britain to the British Government’s attitude.
153
May 2 (85) From the Ambassador in Italy (tel.)
Conversation with the Foreign Minister, who stated that his Government had not made any representations with respect to the Japanese declaration of policy.
154
May 3 (66) From the Consul at Geneva (tel.)
Substance of a conversation between Secretary General Avenol and Japanese Consul General Yokoyama, May 1, concerning the Japanese attitude toward the League’s program of technical assistance to China.
154
May 3 (198) From the Counselor of Legation in China (tel.)
From the Minister, Nanking, May 2: Information that the Chinese Government has requested from the British Government an explanation of the reference in Sir John Simon’s statement, April 30, to special rights of Japan “recognized by other powers”.
156
May 3 (62) To the Ambassador in Japan (tel.)
Refutation of a Japanese news report that in May 1933, President Roosevelt pledged recognition of Japan as the “stabilizing influence of the Far East”.
156
May 3 (761) From the Ambassador in Japan
Conversation with the Soviet Ambassador concerning the general aspects of Soviet-Japanese relations.
156
May 4 (342) From the Ambassador in France (tel.)
Information that the French reply, May 3, to the Japanese explanatory note on China policy established position of France as an upholder of the existing treaties.
159
May 4 (771) From the Ambassador in Japan
Background information concerning Amau’s statement of April 17.
160
May 5 (202) From the Minister in China (tel.)
Advice that the Chinese Government considers the British Government’s explanation of Sir John Simon’s reference to Japanese special rights in China to be unsatisfactory, and has instructed its Minister to make further inquiries.
164
May 7 Memorandum by the Secretary of State
Inquiry of the British Ambassador as to the Department’s attitude toward Sir John Simon’s recent statement concerning special Japanese rights in China; reply that the Department was not disposed to complain about the matter.
164
May 7 (686) From the Ambassador in Great Britain
Analysis of the British Government’s attitude and action with respect to the Japanese statement of April 17.
165
May 8 From the British Ambassador
Sir John Simon’s answer (text printed) to a parliamentary question concerning the phrase relating to special Japanese rights in China.
172
May 9 (70) From the Consul at Geneva (tel.)
Conversation with the Chinese Minister, who related Avenol’s advice that the best position for the Chinese in the League Technical Assistance Committee would be to ignore the Japanese public declarations and to proceed on the assumption that the assistance to China would continue as planned.
172
May 10 From the Minister in China
Information that the Chinese Government has decided not to alter its present policy with respect to the question of postal service between China proper and Manchuria, but that it has discussed two possible methods of settling the question of through traffic on the Peiping-Mukden Railway.
173
May 10 (925) From the Consul General at Mukden to the Minister in China
Report of the appointment of Bishop Gaspais as the temporary representative of the Catholic Church in “Manchoukuo,” and Japanese press comment that the appointment constituted de facto recognition of the new state by the Holy See.
(Footnote: Denial in news despatch from Rome that this appointment in any way implied a recognition of “Manchoukuo.”)
174
May 11 To the Secretary of the Navy
Reasons for Department’s reluctance to issue a general instruction to consular officers to report on movements and concentration of Japanese vessels, as requested in Navy Department’s letter of April 27; information, however, that the Consul at Kobe, Japan, is under standing instruction to report monthly on Japanese shipping.
175
May 12 (92) From the Ambassador in Japan (tel.)
Advice that the French Ambassador is of the opinion that the French reply to the Japanese statement will cause a reopening of the discussion of Japanese policy since it refers to article 7 of the Nine-Power Treaty with which the recent Japanese statements of policy appear to conflict.
176
May 12 (71) To the Ambassador in Japan (tel.)
Substance, as reported by the Paris press, of the French note to Japan; information that the French Government, desirous of adopting an attitude in accord with the policies of the United States and Great Britain, had delayed its note until action had been taken by the other two countries.
176
May 14 (247) From the Minister in Switzerland (tel.)
Substance of the League Advisory Committee’s draft proposal concerning transactions between the “Manchoukuo” and foreign postal administrations, such transactions not to involve the question of recognition of the “Manchoukuo” regime.
177
May 14 (248) From the Minister in Switzerland (tel.)
Information that Department’s position as set forth in its instruction of April 24 is at variance with the advice of the technical organs of the League, and opinion that it might be advisable to concur in the Advisory Committee draft proposal should it be unanimously approved.
178
May 14 (250) From the Minister in Switzerland (tel.)
Indication that the entire Advisory Committee wishes to treat the postal administration question as a purely technical matter with no political significance; opinion that it was considered advisable to withhold comment, but that Department’s views can be presented at next committee meeting, if desired.
179
May 14 (49) From the Ambassador in the Soviet Union
Conversation with Litvinov, who advised that discussions have been reopened with Japan for the sale of the Chinese Eastern Railway, which, if effected, will constitute de facto recognition of “Manchoukuo” by the Soviet Union; his further comments concerning the roles of the United States and Great Britain in the Far East crisis.
179
May 15 (152) To the Minister in Switzerland (tel.)
Advice that the Department prefers the course suggested in its instruction of April 24, but that, with certain provisions, it is not disposed to object to the Advisory Committee’s proposal.
180
May 16 (253) From the Minister in Switzerland (tel.)
Report of the adoption of the Advisory Committee’s proposal with a minor amendment offered by the American Minister.
180
May 17 From the Ambassador in Japan to the Consul at Geneva
Outline of the political situation in Japan with particular reference to the Japanese attitude toward international cooperation at present and the basic Japanese aim of ultimate domination of East Asia.
181
May 18 (265) From the Ambassador in Great Britain (tel.)
Summary of Sir John Simon’s statement relating to British policy in the Far East in reply to questions in the House of Commons, in which he pointed out the limitation of American cooperation in connection with the question of embarking on a policy of economic sanctions.
185
May 19 (267) From the Ambassador in Great Britain (tel.)
Quotation of official text of that portion of the Simon statement pertaining to sanctions and American cooperation.
186
May 22 (97) From the Ambassador in Japan (tel.)
Information concerning the delayed announcement of the recognition of “Manchoukuo” by El Salvador.
189
May 24 Memorandum by the Chief of the Division of Far Eastern Affairs
Outline of the present U. S. diplomatic position in the Far East with special reference to the Naval Conference and the need for naval construction.
189
May 24 (223) From the Minister in China (tel.)
From the Counselor of Legation, Nanking, May 23: Report that the Chinese Government has decided to authorize resumption of through railway traffic with Manchuria under the control of an “international travel agency”, and to permit resumption of post office relations in a way which will accord with the League resolution.
193
May 24 (9) From the Minister in El Salvador
Information concerning Salvadoran recognition of “Manchoukuo”; unfavorable local press comments on rumored reports of the League’s intention to expel El Salvador for taking this action.
194
May 25 (95) From the Consul at Geneva (tel.)
Information that the Japanese Consul General has received official notification from his Government of El Salvador’s recognition of “Manchoukuo”.
195
May 28 From the Counselor of Legation in China
Information concerning an instruction to certain government organs and a circular statement issued on March 11 by the National Government in support of its policy of nonrecognition of “Manchoukuo”.
195
May 29 To the Counselor of Embassy in Great Britain
Information for confidential transmission to the Foreign Office, should an opportune occasion arise, setting forth the facts underlying exchange of messages between Secretary Hull and Foreign Minister Hirota, of February 21 and March 3, and concerning the American wheat and cotton credit to China.
196
May 31 (293) From the Ambassador in Great Britain (tel.)
Opinion that Sir John Simon’s statement, as reported in telegram No. 265, May 18, is not indicative of a new British pro-Japanese policy.
198
June 8 From the Counselor of Legation in China
Conversation with the Japanese Minister, who expressed the opinion that the matter of through railway traffic and postal arrangements with Manchuria should be handled by the military authorities of Japan and China as a part of the armistice agreement of May 31, 1933, and that they bore no relation to the question of recognition of “Manchoukuo”.
199
June 12 (825) From the Ambassador in Japan
Advice that Belgian and Netherland colleagues have been instructed by their Governments to decline invitations to any function in honor of Pu-yi unless the invitation is extended by the Emperor of Japan; also, to avoid any action or attitude which might be interpreted as implying intention of their Governments to recognize “Manchoukuo”.
199
June 28 (325) From the Ambassador in Poland
Information through the Foreign Ministry that Poland has no intention of recognizing “Manchoukuo” (notwithstanding earlier reports to the contrary) as long as the League’s attitude in the matter remains unchanged.
200
June 29 (137) From the Ambassador in Japan (tel.)
Résumé of Kobe Consulate report concerning a concentration of Japanese shipping in home waters, but indication that it would appear to be a normal seasonal trend.
201
June 29 To the Postmaster General
Information that the League of Nations has requested U. S. decision with regard to compliance with Advisory Committee recommendations as to postal traffic through Manchuria; request for views and comments concerning recommendations and U. S. proposed reply.
202
June 30 (283) From the Minister in China (tel.)
Report of announcement, June 28, by the Chinese and Japanese authorities of an agreement for the institution on July 1 of through traffic on the Peiping-Mukden Railway.
203

Chapter III: July I–September 30, 1934

[Page XXII][Page XXIII][Page XXIV][Page XXV][Page XXVI]
Date and number Subject Page
1934 July 2 From the Consul at Tientsin (tel.)
Information that through traffic on the Peiping-Mukden Railway was resumed on July 1 as scheduled, and that further steps are expected toward tacit recognition by Chinese Government that a non-Chinese regime of some permanence exists in Manchuria.
203
July 2 (880) From the Ambassador in Japan
Appraisal of potential incentives to a Soviet-Japanese war; opinion that the likelihood of war in 1934 appears definitely to have passed.
204
July 3 From the Consul at Tientsin (tel.)
Information that postal relations with “Manchoukuo” have been partially resumed, and that transit negotiations between Chinese and Japanese officials are proceeding in Peiping.
208
July 5 Memorandum by the Under Secretary of State
Conversation with the French Chargé d’Affaires concerning a report that the “Manchoukuo” authorities were undertaking to buy arms and ammunition abroad; concurrence in opinion that such sales should not take place.
209
July 5 (7393) From the Military Attaché in Japan to the Chief of the Military Intelligence Division, War Department
Observations gained from an inspection tour of certain points in “Manchoukuo”, Korea, and Japan.
209
July 6 (148) From the Ambassador in Japan (tel.)
For the Secretary of the Treasury from Prof. James Harvey Rogers (on a mission to the Far East for the Treasury Department): Report on Japanese control of the economic situation in Manchuria.
214
July 10 (2831) From the Minister in China
Comments as to the significance of the agreement for the institution of through traffic on the Peiping-Mukden Railway.
215
July 11 From the Acting Postmaster General
Indications from recent reports that occasions may arise necessitating relations between American and “Manchoukuo” Postal Administrations; concurrence in the Department’s attitude toward conforming to the recommendations of the Advisory Committee.
216
July 11 (2828) From the Minister in China
Review of political and economic developments in China during the first 6 months of 1934.
217
July 18 (894) From the Ambassador in Japan
Information concerning the alleged conclusion of a Sino-Soviet agreement for the improvement of communications facilities in Inner Mongolia, and analysis of the ill effect such an agreement would have upon Soviet-Japanese relations.
220
July 19 (2613) To the Chargé in Switzerland
Letter to the Secretary General of the League of Nations (text printed), acknowledging the League communication concerning postal traffic in transit through Manchuria.
222
July 20 (202) From the Ambassador in the Soviet Union (tel.)
Litvinov’s expectation of the success of the Chinese Eastern Railway negotiations; his belief, however, in the inevitability of a Soviet-Japanese conflict despite temporary improvement in the relations between the two countries.
223
July 20 From the Chinese Legation
Telegram from the Foreign Ministry at Nanking concerning report that consular officers from countries which continue to withhold recognition from “Manchoukuo” will not be permitted to function there after April 1, 1935.
224
July 21 From the Chief of the Division of Far Eastern Affairs to the Secretary of State
Opinion that exclusion of U. S. consular officers from Manchuria would in itself cause the United States little inconvenience and little economic loss.
224
July 26 (G–2 8881) From the Acting Military Attaché in China to the Chief of Staff, United States Army
Report of the organization of the Mongolian Autonomy Council in compliance with regulations promulgated by the National Government; comments concerning the political significance of this step.
225
July 27 (9570) From the Consul General at Shanghai
Information concerning the settlement of certain American claims against the Japanese Government resulting from the Shanghai Incident of 1932.
227
July 27 (L. 554) From the Consul at Hankow to the Minister in China
Comments concerning the collapse of the independent Kashgar regime at the hands of General Sheng Shih-ts’ai, Garrison Commander of Sinkiang; question as to whether the Chinese Government will seize this opportunity to consolidate its position in Sinkiang and take effective steps toward general rehabilitation and improvement of communications in that remote province.
228
July 30 (228) From the Ambassador in the Soviet Union (tel.)
Résumé of comments by Litvinov and Radek, Pravda editorial writer, concerning the reversal of British policy toward the Soviet Union; Radek’s further comment that the next step of Soviet diplomacy would be to sign a nonaggression pact with Great Britain which would include a guarantee of the frontiers of India.
230
July 30 (229) From the Ambassador in the Soviet Union (tel.)
Further opinions of Litvinov and Radek with respect to Great Britain’s change in attitude toward the Soviet Union, and Litvinov’s favorable comment on the U. S. proposal to establish airplane bases on the Aleutian Islands.
231
Aug. 1 (236) From the Ambassador in the Soviet Union (tel.)
Confidential statement (text printed) by L. M. Karakhan, former Assistant Commissar for Foreign Affairs, concerning his mission to the Mongolian Republic occasioned by the discovery of a Japanese plot to overthrow the Mongolian Government and to replace it by a pro-Japanese government.
232
Aug. 3 (335) From the Minister in China (tel.)
Information concerning a request by the Kwantung Army that the British military authorities obtain its permission before holding maneuvers north of the Great Wall, and reported British reply offering to supply the Kwantung Army with a schedule of intended maneuvers as a matter of courtesy.
233
Aug. 3 (338) From the Minister in China (tel.)
Decision of General Huang Fu to resume his duties as Chairman of the Peiping Political Affairs Readjustment Council, largely as a result of the satisfactory settlement of informal Sino-Japanese negotiations at Dairen relating to administration of the demilitarized zone established by the armistice agreement of May 31, 1933.
234
Aug. 7 (345) From the Minister in China (tel.)
Information concerning preparations for the opening of a Chinese customs office at Kupehkow in August and at five other passes shortly thereafter, primarily for the prevention of smuggling.
234
[Aug. 14] Report by the Vice Consul at Kobe
Analysis of the strategical value of Japan’s new fast merchant fleet.
235
Aug. 16 From the Secretary of the American Delegation at Geneva
Advice that the League Secretariat proposes to publish a digest of the replies received in connection with the Advisory Committee’s recommendations on the question of postal traffic in transit through Manchuria, and requests permission to include the U. S. reply.
243
Aug. 16 (2906) From the Minister in China
Résumé of information from Mr. Hagiwara, an official of the Japanese Foreign Office on tour in China, concerning Japanese intentions toward North China.
244
Aug. 16 (2907) From the Minister in China
Summary of Mr. Hagiwara’s views as to the Japanese attitude toward the next naval disarmament conference.
247
Aug. 17 From the Consul at Tientsin (tel.)
Further information with respect to the establishment of new Chinese customs stations along the Great Wall, the first of which will be opened on August 18.
249
Aug. 21 (372) From the Minister in China (tel.)
From Mukden, August 20: Report concerning an assault, August 19, upon a British and American riding party by Japanese members of a road construction gang.
249
Aug. 22 (183) From the Ambassador in Japan (tel.)
Rumors of negotiations for a renewal of the Anglo-Japanese Alliance; advice that no official inquiries will be made unless instructed.
250
Aug. 22 (145) To the Ambassador in Japan (tel.)
Advice that the Department has no official information with respect to the revival of the Anglo-Japanese Alliance; instructions to continue to report on developments in the matter.
250
Aug. 23 (188) From the Ambassador in Japan (tel.)
Résumé of Foreign Minister’s comments to news correspondents concerning the rumored Anglo-Japanese negotiations; belief that the British Embassy in Tokyo has no information on the question.
(Footnote: Information that the Counselor of Embassy in Great Britain was told by the Foreign Office that there was no foundation for the rumors concerning the accord.)
251
Aug. 23 (935) From the Ambassador in Japan
Observations on the renewed tension in Soviet-Japanese relations resulting from events in Manchuria relating to the Chinese Eastern Railway.
251
Aug. 23 (2929) From the Minister in China
Comments concerning the question of recognition of “Manchoukuo”.
258
Aug. 24 (269) From the Ambassador in the Soviet Union (tel.)
Soviet protest to Japanese Government, August 22, alleging Japanese aggressive actions and false statements in Manchuria tending to disorganize the operation of the Chinese Eastern Railway and violate treaty rights.
260
Aug. 24 (149) From the Ambassador in the Soviet Union
Observations concerning Soviet-Japanese negotiations for the sale of the Chinese Eastern Railway; views of certain Soviet officials with respect to the Soviet note of August 22.
261
Aug. 27 (273) From the Ambassador in the Soviet Union (tel.)
Résumé of Tass communiqué concerning Soviet reply to recent Japanese and “Manchoukuo” statements relating to Chinese Eastern Railway negotiations.
263
Aug. 28 (389) From the Minister in China (tel.)
From Harbin, August 27: Report of further arrests of Soviet employees of the Chinese Eastern Railway following interruption of negotiations in Tokyo.
264
Aug. 28 From the Counselor of Legation in China
Summary of an interview between Mr. Hollis Lory of Stanford University and Dr. Wang Ching-wei, Acting Foreign Minister, concerning the Chinese attitude toward Japanese and Soviet ambitions in the Far East.
264
Aug. 31 (166) To the Secretary of the American Delegation at Geneva (tel.)
Advice that, provided other interested Governments adopt a similar attitude, the Department is not disposed to object to the publication of the U. S. reply concerning the question of postal traffic in transit through Manchuria.
266
Sept. 2 (282) From the Ambassador in the Soviet Union (tel.)
Information from the Japanese Embassy that negotiations have been reopened by the Soviets for the sale of the Chinese Eastern Railway and that Soviet reports of Japanese intention to seize the railway are groundless.
267
Sept. 4 (395) From the Minister in China (tel.)
Résumé of a conversation between the Counselor of Legation and the Soviet Ambassador at Nanking in which the latter took a serious view of the present Soviet-Japanese tension and the danger of Japanese seizure of the Chinese Eastern Railway.
267
Sept. 4 (398) From the Minister in China (tel.).
Report from the Consul General at Mukden (text printed) with respect to oral representations made in connection with assault by Japanese workman on British and American riding party on August 19. Concurrence in British Legation’s views that attempts should be made for a satisfactory local settlement of the case.
268
Sept. 6 (280) To the Minister in China (tel.)
Approval of the Legation’s proposal for efforts to bring about a satisfactory local settlement of the riding party case.
269
Sept. 7 Memorandum by the Ambassador in Japan
Conversation with the Soviet Ambassador, who expressed his views concerning the Chinese Eastern Railway negotiations and Soviet-Japanese relations in general.
269
Sept. 7 (964) From the Ambassador in Japan
British Ambassador’s denial of responsibility for reports concerning the revival of the Anglo-Japanese Alliance; translation of an article appearing in the Tokyo Nichi-Nichi on August 26 (text printed) purporting to set forth the views of the Foreign Office with respect to the conclusion of a political or economic pact with any power.
272
Sept. 10 From the Consul at Tientsin (tel.)
Report of the establishment of five Chinese customs posts along the “Manchoukuo” border within the last month.
274
Sept. 14 (2975) From the Minister in China
Review of Japan’s vacillating policy toward China.
275
Sept. 14 (18) From the Consul General at Harbin
Information and impressions concerning the Chinese Eastern Railway question.
278
Sept. 15 (2976) From the Minister in China
Report of increasingly unsatisfactory relations between Inner Mongolia and China owing to the failure of the Chinese to fulfill the terms of the agreement concerning the autonomous government established in Inner Mongolia in April.
280
Sept. 18 (979) From the Ambassador in Japan
Opinion that the admission of the Soviet Union to membership in the League of Nations will provide one more restraining influence, as did American recognition, in the conduct of Japan’s relations with Soviet Russia.
281
Sept. 21 (425) From the Minister in China (tel.)
From Mukden, September 20: Information that Japanese Consul General’s reply to representations concerning the assault incident of August 19 indicated unwillingness of Japanese local authorities to take any action against the assailants.
282
Sept. 25 (212) From the Chargé in Japan (tel.)
Information that the sale of the Chinese Eastern Railway has been accomplished although a few details remain unsettled.
283
Sept. 28 (216) From the Chargé in Japan (tel.)
Opinion that formal representations should not be made in regard to the assault incident in Manchuria, particularly as the British Embassy is making representations in the case, but that the discourteous and unsatisfactory attitude of the Japanese Consul General at Mukden might be brought informally to the attention of the Foreign Office.
283
Sept. 28 (989) From the Chargé in Japan
Information in connection with the rumored revival of the Anglo-Japanese Alliance indicating that there may be some sort of Anglo-Japanese understanding.
284
Sept. 29 (168) To the Chargé in Japan (tel.)
Authorization to proceed as suggested in telegram No. 216, September 28.
285

Chapter IV: October 1–December 31, 1934

[Page XXVII][Page XXVIII][Page XXIX]
Date and number Subject Page
1934 Oct. 1 Memorandum by the Under Secretary of State
Conversation with the Soviet Ambassador concerning Japanese aims in respect to Inner and Outer Mongolia.
285
Oct. 3 Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs
Outline of trade negotiations between Japan and Netherlands East Indies at conference in Batavia, in session since June.
286
Oct. 8 To the Secretary of Commerce
Résumé of facts concerning the participation of American aviators in the establishment of a Chinese Government aviation school at Hangchow, China; reiteration of the Department’s original view as to the inadvisability of involving the U. S. Government or any of its officers in plans of the Chinese Government with respect to military air training.
288
Oct. 10 (353) From the Ambassador in the Soviet Union (tel.)
Summary of Litvinov’s views on the probable conclusion of a Soviet-Japanese nonaggression pact and question of recognition of “Manchoukuo”.
291
[Oct. 11] Memorandum by the Under Secretary of State of a Conversation With the British Ambassador
Discussion of the British attitude toward Japan.
292
Oct. 20 (1019) From the Ambassador in Japan
Report of a controversy between the War Office and the Ministry of Overseas Affairs concerning the administration of the Kwantung Leased Territory, which may lead to the fall of the Okada Cabinet.
294
Oct. 31 (371) From the Chargé in the Soviet Union (tel.)
Substance of a Tass communiqué on the present state of Chinese Eastern Railway negotiations.
296
Nov. 1 (1030) From the Ambassador in Japan
Report on the unsettled problems between Japan and the Soviet Union, among the most important of which is Japan’s undefined policy concerning Mongolia.
297
Nov. 1 (L–808) From the Consul General at Tientsin to the Chargé in China
Report of the establishment on November 1 of the “Commission for the Settlement of Affairs Pertaining to the War Zone”.
301
Nov. 9 (3127) From the Chargé in China
Japanese activities indicating possible future Japanese military expansion in Chahar and Hopei Provinces and “Manchoukuo.”
302
Nov. 10 (3125) From the Chargé in China
Reuter’s Foreign Service report, November 5, of British decision that British troops at Shanhaikwan should abandon maneuvers beyond the Great Wall in order to avoid involving the British Government in a juridical controversy with Japan.
307
Nov. 19 (1512) To the Chargé in China
Approval of the Legation’s position that question of free customs privileges should not be discussed with “Manchoukuo” officials in view of impossibility of granting reciprocity; instructions for the Consuls General at Harbin and Mukden to refrain from entering into any such discussions.
308
Nov. 20 (366) To the Chargé in China (tel.)
Department’s comments and instructions concerning the Shanghai defense scheme as amended June 25.
308
Nov. 20 (51) From the Consul General at Harbin
Detailed report on the transfer of control over Japanese-“Manchoukuo” relations from the Foreign Office to the “Manchurian Affairs Bureau”, and other steps giving the Japanese increased military, administrative, and economic control in Manchuria.
310
Nov. 21 (G–2 8974) From the Military Attaché in China to the Chief of Staff, United States Army
Chinese dissatisfaction with work of the American aviation group at Hangchow; efforts of Mussolini to insure a prominent position in China for the Italian aviation mission.
315
Nov. 24 (3156) From the Chargé in China
Report of recent changes in the Hopei Provincial Government and the Municipality of Tientsin which indicate a strengthening of the Japanese position and a weakening of the Chinese elements in the northern part of the Province which are opposed to concessions to the Japanese.
318
Nov. 28 (L–831) From the Consul General at Tientsin to the Chargé in China
Summary of statements of alleged fact and opinion made by local provincial and municipal officials, indicating that the Chinese have reached an accord with the Japanese on several long-pending issues affecting the political and military situation in North China.
320
Nov. 29 (546) From the Chargé in China (tel.)
From Harbin, November 28: Intention to refrain from attending inauguration ceremony of Mayor Lu Jung-huan as “Governor of Pinchiang Province”, but to receive and return his call.
To Harbin, November 29: Legation’s approval of proposed action provided return call is made informally and unofficially.
323
[Dec. 4] Report by the Vice Consul at Kobe
Supplement to the August 14 report on the strategical value of Japan’s new merchant fleet.
323
Dec. 6 (557) From the Chargé in China (tel.)
Suggestions in connection with Department’s instruction No. 366, November 20, with respect to the Shanghai defense scheme.
330
Dec. 6 Memorandum by the Ambassador in Japan
Conversation with the Netherland Minister concerning the naval conversations and Japanese plans in Asia.
331
Dec. 7 (560) From the Chargé in China (tel.)
Report of attacks by Communist troops upon Government forces at Kwangtung and Kwangsi, and of conversations under way between the representatives of the Chinese Government and the Southwest looking toward a solution of the conflict.
334
Dec. 7 (3175) From the Chargé in China
Information from Chinese and Japanese sources concerning the reestablishment of normal postal communications between North China and Manchuria.
336
Dec. 7 (1076) From the Ambassador in Japan
Foreign Office spokeman’s oral statement, November 14 (substance printed), with respect to a press despatch concerning intention of the League of Nations Mandates Commission to investigate reports of alleged fortification of Japanese mandated islands in the South Seas, denying that Japan had fortified these islands and expressing Japanese determination to retain control of them after withdrawal from the League.
338
Dec. 7 (20) From the Consul General at Mukden to the Chargé in China
Information concerning an item in the Hoten Mainichi, December 6, reporting an alleged movement of the former North Eastern Army to establish the independence of North China, embracing the provinces of Hopei, Shantung, Shansi, Chahar, and Suiyuan; opinion that the item may represent a desire to orient the Japanese public on possible future developments in North China.
339
Dec. 11 (1078) From the Ambassador in Japan
Report of a change in Japanese representation in Manchuria occasioned in part by the recent introduction of new plans in the Japanese governmental organs in that region.
340
Dec. 14 (385) To the Chargé in China (tel.)
Attitude toward Legation’s suggestions in telegram No. 557, December 6, pertaining to the Shanghai defense scheme.
340
Dec. 22 (3218) From the Chargé in China
Information concerning rumored Japanese proposals to the Chinese looking toward: (1) extension of the demilitarized area in North China, (2) “military cooperation” by the appointment of at least five Japanese military advisers to each of the coastal provinces, and (3) “economic cooperation” by a Japanese loan for projects in the Yangtze River Valley in the Northwest.
341
Dec. 24 (9782) From the Consul General at Shanghai
Apprehension of the Chinese public over recent maneuvers conducted by the Japanese Naval Landing Force in various areas of the International Settlement.
342
Dec. 31 From the Under Secretary of State to the Chief of the Division of Far Eastern Affairs
Discussion with President Roosevelt of the awkward situation created by the simultaneous announcements of Japanese termination of the Washington Naval Treaty and U. S. Navy’s intended maneuvers in the Pacific; disinclination of the President to consider suggestions toward modification of the Navy’s plans.
343
Dec. 31 (219) To the Ambassador in Japan (tel.)
Information that the intended naval maneuvers consist only of defensive exercises in the area between Hawaii and the Aleutian Islands.
344
1935 Jan. 9 (3247) From the Chargé in China
Review of developments in China during the year 1934.
344

CHINA

Problem of Controlling the Traffic in Opium and Narcotic Drugs in China, Including Manchuria and Jehol

[Page XXX][Page XXXI]
Date and number Subject Page
1934 Jan. 27 (796 Pol.) From the Consul at Geneva
Résumé of developments relative to the Chinese amendments to the report of the Opium Advisory Committee as adopted by the Council of the League of Nations on January 20.
349
Apr. 2 (132) To the Ambassador in Great Britain (tel)
Background information concerning a request, March 16, by the League Council that certain foreign Governments, including the United States, furnish the Opium Advisory Committee with any information obtainable on narcotic drug traffic in Manchuria and Jehol; instructions to ascertain informally whether the British Government would be willing to defer its reply pending an exchange of views with the U. S. Government. Advice that Stewart J Fuller, representative on the Opium Advisory Committee, could join the discussion in London, May 2–May 5.
354
May 4 (223) From the Ambassador in Great Britain (tel.)
Agreement between representatives of the Foreign Office and the Embassy, May 3, to send a noncommittal acknowledgment to the League advising that the Minister for Foreign Affairs will furnish such information as can properly be done.
355
May 4 (179) To the Ambassador in Great Britain (tel.)
Concurrence in the action prescribed in telegram No. 223, May 4; instructions to advise the Department when the British reply has been forwarded to the League and to inform the Foreign Office that the U. S. Government is forwarding a similar reply.
355
May 26 (45) To the Consul at Geneva (tel.)
For Fuller: Receipt of information that British Government has decided no action is necessary at present in connection with the League’s request of March 16, and advice that the Department will defer its reply to the League pending Fuller’s return from London.
356
June 8 (236) From the Minister in China (tel.)
Chinese request to have a representative present during search of American gunboats on the Yangtze River for suspected smuggled narcotics; advice that the Legation concurs in the decision of Admiral Wainwright, commander of Yangtze Patrol, U. S. Asiatic Fleet, to whom the matter was referred, to refuse permission.
356
June 14 (170) To the Minister in China (tel.)
Department’s concurrence in decision set forth in telegram No. 236, June 8.
357
June 28 (450) To the Ambassador in Great Britain
Quotation of a statement made in Parliament, June 7, by Sir John Simon concerning the League’s request for information on narcotics traffic; instructions to inquire of the British Government as to its intentions in the matter.
358
July 13 (823) From the Ambassador in Great Britain
Advice that the British Government has not as yet replied to the League’s request of March 16 and does not plan to take action at present.
359
July 26 (227) To the Minister in China (tel.)
Confidential information concerning a proposal of the Chinese representative on the Opium Advisory Committee with respect to the employment of A. E. Blanco, of the Anti-Opium Information Bureau, Geneva, to advise the Chinese Government in the suppression of opium and drug traffic.
360
July 30 (1418) To the Minister in China
Details concerning the report of the Opium Advisory Committee and U. S. and British attitudes toward the Council’s request for information on narcotics traffic in Manchuria.
361
Aug. 2 To the Consul General at Tientsin (tel.)
Instructions to report on the alleged action of the Japanese military in obtaining by force from the Chinese Magistrate at Changli the return of fines imposed upon and the narcotics seized from certain Chinese.
364
Aug. 8 (565) To the Ambassador in Japan
League Secretary General’s note of March 19 to the Japanese Foreign Minister concerning supervision of narcotics traffic in Manchuria, and Japanese reply, May 22 (texts printed).
(Footnote: The same, mutatis mutandis, to the Minister in China, August 8.)
365
Aug. 27 (626) From the Consul at Tientsin
Report on the Changli incident as requested in Department’s telegram of August 2.
366
Sept. 4 (279) To the Minister in China (tel.)
Instructions to indicate informally to the appropriate authorities in Nanking the concern of the U. S. Government over the apparent increase in smuggling of prepared opium from China to the United States.
369
Sept. 21 (68) From the Counselor of Legation in China (tel.)
Report on the efforts of the National Health Administration to provide a lawful source of supply of narcotics for legitimate medicinal purposes.
370

Proposed International Collaboration for the Economic Reconstruction of China; Organization by Chinese Bankers of the China Development Finance Corporation

[Page XXXII][Page XXXIII][Page XXXIV][Page XXXV]
Date and number Subject Page
1934 Jan. 13 (131) To the Counselor of Legation in Switzerland, at Geneva (tel.)
Instructions to accept informally any invitation to attend the meeting of the Committee on Technical Cooperation between the League of Nations and China, and to attend in a strictly unofficial capacity.
371
Jan. 16 (224) From the Counselor of Legation in Switzerland (tel.)
Account of the meeting of the Committee on Technical Cooperation between the League and China.
371
Jan. 18 Memorandum by the Chief of the Division of Far Eastern Affairs of a Conversation With the Japanese Chargé
Comments of the Chargé concerning the Reconstruction Finance Corporation $50,000,000 loan to China and its effect upon U. S.-Japanese relations.
372
Feb. 10 From the Counselor of Legation in China
Conversation with Yakichiro Suma, newly appointed Japanese Consul General and First Secretary of Legation at Nanking, who indicated Japanese opposition to any plan to finance China politically or economically with foreign capital, excluding Japanese participation.
373
Mar. 26 From the Counselor of Legation in China
Conversation with German Minister, who related the substance of Mr. Y. Suma’s remarks to him concerning the futility of any plans for the rehabilitation of China in which Japan does not take preponderant part.
375
Mar. 27 (130) From the Consul General at Shanghai (tel.)
Report of the first plenary meeting of the National Economic Council in Nanking, March 27, and of proposals adopted.
376
May 3 (241) From the Minister in Switzerland (tel.)
Information that the China Technical Committee will be called during the coming session of the League Council, May 14, and that the Minister will attend in the capacity prescribed by the Department.
377
May 3 Memorandum by the Minister in China of a Conversation With Mr. David Drummond
Background information from Mr. Drummond concerning the steps toward organization of a Chinese bankers syndicate by Jean Monnet, a French financier who came to China at the invitation of Finance Minister T. V. Soong.
377
May 5 Memorandum by the Minister in China of a Conversation With Mr. Jean Monnet
Further discussion of plans for financial assistance to China.
379
May 10 (149) To the Minister in Switzerland, at Geneva (tel.)
Request that the Counselor of Legation be instructed to attend meetings of the China Technical Committee as an unofficial observer, unless it appears that the Committee will take action on Japanese allegations concerning political activities of the Committee.
381
May 15 (251) From the Minister in Switzerland (tel.)
Information that inquiry reveals no intention of the Committee to take formal notice of Japanese claims as to its political activities.
381
May 15 Memorandum by the Chief of the Division of Far Eastern Affairs
Conversation with the Chinese Minister, who expressed hope that the U. S. Government would take an active part in the forthcoming meeting of the China Technical Committee; advice to Minister that U. S. representatives cannot participate actively in a League Committee.
381
May 17 (255) From the Minister in Switzerland (tel.)
Account of the China Technical Committee meeting and adoption of a report (text printed) concerning the examination and action taken on report of the technical agent, Dr. Ludwig Rajchman, on his mission to China.
382
May 18 Memorandum by the Chief of the Division of Far Eastern Affairs
Substance of a telegram from Professor J. H. Rogers to Secretary of the Treasury Morgenthau concerning a proposal by the Chinese Minister of Finance that the U. S. Government grant a rehabilitation loan to China; opinion that, until the U. S. Government has clearly defined its course concerning financial assistance to China and has issued express instructions accordingly, there should be no discussion by American officials with Chinese officials of any such possibility.
383
May 21 (233) From the Consul General at Shanghai (tel.)
For Morgenthau from Rogers: Preliminary report on the forthcoming establishment of the China Finance Development Corporation with a view toward securing foreign investment in China for rehabilitation projects.
385
May 26 (2744) From the Minister in China
Substance of a conversation between an American newspaper representative and Mr. Suma, Secretary of Japanese Legation, in which the latter expressed gratification at having learned that the Japanese Foreign Office had adopted some of his views concerning Monnet’s scheme for inducing foreign investments in China; advice that Suma is said to view the scheme with disfavor for several reasons.
386
May 29 (411) To the Ambassador in France
Instructions to refrain from further reply to Mr. Charles Sée, Director of the Syndicat Europeen d’Entreprises, concerning his inquiry as to names of American firms which may be interested in cooperating on public works projects in China.
387
June 8 (2742) From the Minister in China
Report of the definite establishment of the China Development Finance Corporation, and Monnet’s plans to return to the United States and Europe in furtherance of his scheme.
387
June 11 Memorandum by the Chief of the Division of Far Eastern Affairs
Recommendation that the U. S. Government adopt an attitude favorable in principle toward international action, through the agency of the China Consortium of 1920, with a view to giving financial assistance to China.
388
June 12 From the Chief of the Division of Far Eastern Affairs to the Secretary of State
Request for the Secretary’s views concerning the possibility of using the China Consortium as an agency for cooperative action toward solving China’s financial difficulties; request also for authority to engage in a general discussion of the China problem with Mr. Thomas Lamont of J. P. Morgan & Co.
390
June 12 Memorandum by the Chief of the Division of Far Eastern Affairs
Telephone conversation with Mr. Lamont, who inquired as to the U. S. attitude toward British, French, and Japanese efforts to revive the China Consortium agreement and expressed the desire to discuss the question further with Mr. Hornbeck in New York before June 20.
391
June 13 From J. P. Morgan & Co.
Acknowledgment of correspondence transmitting inquiry of Mr. Charles See, Director, concerning the question of American participation in the Syndicat Europeen d’Entreprises; advice that, in view of unfavorable existing conditions, the majority of the members of the American Group of the Consortium would prefer to see the group disbanded.
392
June 18 Memorandum by the Chief of the Division of Far Eastern Affairs
Statement by telephone to Mr. Lamont (text printed) setting forth the views of the Administration as to the inadvisability of the American Group’s withdrawal from the Consortium, and as to possible future action of the Consortium.
393
June 18 To J. P. Morgan & Co.
Advice that the Department’s views concerning the China Consortium have been expressed by Mr. Hornbeck in a telephone conversation with Mr. Lamont, June 18.
394
July 13 (958 Pol.) From the Consul at Geneva
Conversation with Rajchman, who gave his views on the relation of technical assistance to China to Japanese policy in the Far East.
395
July 13 (2843) From the Minister in China
Conversation with Jean Monnet, who recently assisted in the organization of the China Development Finance Corporation; Monnet’s advice that the Japanese are seeking to cooperate with the organization since its nonpolitical character is now evident.
403
July 19 (218) To the Minister in China (tel.)
Instructions to evaluate an objection of the Japanese Legation, attributed to Suma, to the effect that Monnet’s project violates the principle of the Consortium Agreement of 1920.
403
July 31 (2881) From the Minister in China
Opinion that there is no sound basis for the Japanese objection to the China Development Finance Corporation, and supposition that the unfavorable attitude grew out of Japanese suspicion that Monnet’s activities were in preparation for foreign financial assistance to the Chinese which would exclude Japanese participation.
403
Aug. 21 (L–431 Diplo.) From the Counselor of Legation in China to the Minister in China
Conversation with Suma concerning negotiations between the British and Chinese Corporation and the China Development Finance Corporation for a loan for the purpose of completing the Shanghai-Hangchow-Ningpo Railway; Suma’s comment upon the Japanese Government’s interest in retaining the principle of supervision of foreign investments in China as embodied in the Consortium Agreement.
405
Aug. 28 (2941) From the Minister in China
Further information concerning Japanese objections to the China Development Finance Corporation because of its alleged League complexion and political character.
407
Sept. 1 (993 Pol.) From the Consul at Geneva
Report on developments in the League’s project for technical assistance to China and the termination of Rajchman’s activities in the matter.
408
Sept. 19 Memorandum by the Chief of the Division of Far Eastern Affairs of a Conversation With Mr. Thomas W. Lamont, of J. P. Morgan & Co.
Exchange of views on the participation of the American Group in the Consortium, and the practicability of utilizing the China Development Finance Corporation as a link between China and the Consortium.
412
Sept. 20 Memorandum by the Chief of the Division of Far Eastern Affairs
Conversation with Monnet, who gave an account of his activities in the China Development Finance Corporation and his theory of using the Corporation in the development of business and industry in North China.
417
Sept. 27 (271) From the Minister in Switzerland (tel.)
Convocation of the Council Committee of Technical Cooperation between the League and China, September 28.
418
Sept. 28 (272) From the Minister in Switzerland (tel.)
Report of meeting of the China Technical Committee and unanimous adoption of the League technical organization’s observations on the Rajchman report.
418
Oct. 5 (168) To the Minister in Switzerland (tel.)
Instructions to report on the status of the League Transit Committee’s plan to conduct a survey of water conservancy and highway transportation problems in China; and, in view of the Committee’s desire to include an American Army engineer in the work, to inquire whether foreign engineers already selected have been in the active military service of their respective governments.
419
Oct. 8 (274) From the Minister in Switzerland (tel.)
Advice that the engineers already selected are civil servants or private consultants, and that an American Army engineer was suggested only from the understanding that U. S. Army engineers have had the most experience with the type of river conservancy work to be investigated in China.
419
Oct. 9 (169) To the Minister in Switzerland (tel.)
Instructions to inform the director of the Communications and Transit Section that the Department perceives no objection to participation by an American civilian in the work of the survey.
(Footnote: League announcement on November 7 that a mission composed of four engineers—British, French, Dutch, and Italian—had left for China.)
420
Oct. 11 [–16] From Mr. Thomas W. Lamont of J. P. Morgan & Co.
Résumé of a discussion with the Managing Committee of the American Group of the Consortium and its concurrence in the Department’s view, as presented by Lamont, that the present would be an inopportune time for active consideration of dissolution of the American Group.
420
Oct. 12 Memorandum by Mr. Raymond C. Mackay of the Division of Far Eastern Affairs
Conversation with Monnet concerning the progress and future activities of the China Development Finance Corporation.
421

Effect of the Silver-Purchasing Program of the United States Government upon China’s Economy

[Page XXXVI][Page XXXVII][Page XXXVIII][Page XXXIX][Page XL]
Date and number Subject Page
1934 Feb. 17 (59) From the Consul General at Shanghai (tel.)
Conversation with Arthur H. Young, American adviser to the Chinese Ministry of Finance, who expressed the hope that the Chinese Government would be consulted in advance if U. S. measures concerning silver unfavorable to China are in fact being considered.
423
[Feb. 20 (?)] From the Chinese Bankers Association to the Chinese Minister (tel.)
Communication for transmittal to President Roosevelt, concerning rumored U. S. silver measure, urging his support toward stabilization rather than drastic enhancement of silver price.
424
Feb. 21 (19) From the Counselor of Legation in China (tel.)
Résumé of discussion with two Chinese bankers on the silver question; general Chinese apprehension that the U. S. Government will take some measure to stabilize silver at a high level which would stimulate the flight of silver from China.
425
Feb. 22 (96) From the Minister in China (tel.)
Receipt of a report that Finance Minister Kung has directed the Chinese Minister in Washington to make representations to the U. S. Government on the undesirability of measures calculated to raise the price of silver.
426
Feb. 22 (97) From the Minister in China (tel.)
Report of opinions in well-informed circles in North China concerning important factors in the increase of trade.
426
Feb. 23 (71) From the Consul General at Shanghai (tel.)
Brief analysis of the silver question as it affects Chinese imports and exports; reported intention of Chinese bankers to demand an embargo or increased export duty as a precautionary measure against high-priced silver.
427
[Mar. 5 (?)] From the Shanghai Chinese General Chamber of Commerce and the Shanghai Foreign General Chamber of Commerce to the Chinese Minister (tel.)
Communication for transmittal to President Roosevelt endorsing the views of the Chinese Bankers Association as noted in its telegram of February 20.
428
Mar. 14 (120) From the Minister in China (tel.)
Information that news despatches from Washington continue to report the interest of Congress in legislation toward rehabilitation of silver; résumé of opinions of Chinese Government and financial circles concerning remedial measures in the event of drastic American action.
428
Mar. 23 (63) To the Consul General at Shanghai (tel.)
Instructions to accord appropriate assistance to Professor James H. Rogers, who is starting on a mission for the Treasury Department to obtain a first-hand view of present-day conditions in the monetary centers of the world.
(Instructions to repeat to Peiping, Nanking, and Tokyo.)
430
Apr. 17 (173) From the Consul General at Shanghai (tel.)
For Morgenthau from Rogers: Preliminary report on the probable effect of further rise in silver prices upon already depressed conditions in agriculture.
430
Apr. 19 (183) From the Consul General at Shanghai (tel.)
For Morgenthau from Rogers: Report that the majority of the largest American import firms as well as Chinese bankers and advisers to the Foreign Minister, are more interested in stability of the silver price than in the level at which it is stabilized.
431
Apr. 21 (187) From the Consul General at Shanghai (tel.)
For Morgenthau from Rogers: Indications that no responsible Chinese opinion in Shanghai favors a further rise in silver.
432
Apr. 23 (189) From the Consul General at Shanghai (tel.)
For Morgenthau from Rogers: Belief that, in view of the demand for stability by important groups already reported, the Chinese Government would welcome some plan assuring future stability of silver price in terms of major currencies.
433
May 2 From the Consul General at Hankow (tel.)
For Morgenthau from Rogers: Chiang Kai-shek’s comment as to adverse effect of higher silver on his agricultural rehabilitation program.
433
May 8 From the Consul General at Hankow (tel.)
For Morgenthau from Rogers: Preliminary conclusions concerning the study of Chinese balance of international payments, and opinion that any further rise in the price of silver in terms of major currencies at this time would aggravate the adverse situation.
433
May 10 From the Counselor of Legation in China
Transmittal of a memorandum of a conversation between the American Minister and the Secretary General of the National Defense Council on the price of silver and conditions in China.
434
May 16 From the Consul General at Shanghai (tel.)
For Morgenthau from Rogers: Report on the depressed agricultural and trade conditions as affected by the complicated monetary situation in Western and Southwestern China.
435
May 17 (226) From the Consul General at Shanghai (tel.)
For Morgenthau from Rogers: Further study of Chinese adverse balance of international payments, and conversation with Finance Minister Kung, who proposed a U. S. rehabilitation loan to China as an economic counteractive.
436
May 18 (136) To the Consul General at Shanghia (tel.)
Instructions to inform Rogers of the Department’s view that he should not receive or discuss any proposal for a loan unless expressly instructed to do so.
437
May 23 (239) From the Consul General at Shanghai (tel.)
For Morgenthau from Rogers: Report of the favorable reception in Shanghai of President Roosevelt’s message to Congress, May 22, on the monetary use of silver.
437
June 28 (275) From the Minister in China (tel.)
For Morgenthau from Rogers: Information that the rise in silver is causing some concern in banking and governmental circles, and belief that protective measures are being considered by the Chinese Government inasmuch as Kung has asked Rogers’ advice concerning increased export tax on silver.
438
July 6 (149) From the Ambassador in Japan (tel.)
For Morgenthau from Rogers: Opinion that a national embargo by the Chinese Government is unlikely at present but that an increase in export tax is apt to follow further silver outflow.
438
July 11 (155) From the Ambassador in Japan (tel.)
For Morgenthau from Rogers: Belief that the favorable effects of President Roosevelt’s silver message and ensuing legislation which brought temporary stability to Chinese exchange have been considerably tempered by recent rises in silver price, wider exchange fluctuations, and more persistent silver outflow.
439
Aug. 3 From the Consul at Hong Kong (tel.)
For Morgenthau from Rogers: Further analysis of the factors leading to a more adverse balance of international payments, and comment that higher silver prices would aggravate the situation.
440
Aug. 20 (372) From the Consul General at Shanghai (tel.)
Representations of Finance Minister Kung, for transmittal to President Roosevelt, concerning the menacing effect of the Silver Purchase Act of 1934 upon Chinese interests; Kung’s desire for an indication of probable U. S. policy in the future purchase of silver.
440
Sept. 22 (227) To the Consul General at Shanghai (tel.)
Statement of U. S. policy with respect to silver as suggested by the Treasury Department (text printed) in reply to Kung’s message of August 20.
441
Sept. 24 From the Chinese Minister
Further representations from Finance Minister Kung concerning the unfavorable effects of the Silver Purchase Act upon the Chinese economy; inquiry as to whether the U. S. Government would consider an exchange of gold for silver with the Chinese Government.
442
Sept. 28 From the Chinese Legation
Information that a recent Chinese order intended to curb speculation in exchange and gold bar should not be misinterpreted as an embargo on silver.
443
Oct. 2 Memorandum by the Secretary of State
Conversation with the Chinese Minister concerning Kung’s recent inquiry as to an exchange of silver from China for U. S. gold and his representations against the Silver Purchase Act; Secretary Hull’s reply that such an exchange is not a normal procedure between governments and his reiteration of the U. S. silver purchasing policy.
443
Oct. 2 From the Chinese Minister
Transmittal of Kung’s acknowledgment of the message conveyed in telegram No. 227, September 22; Kung’s inquiry concerning nonreceipt of U. S. reply to the questions of exchange of Chinese silver for U. S. gold and future U. S. silver purchasing policy.
445
Oct. 9 (477) From the Consul General at Shanghai (tel.)
Advice from the American Minister that the Department will receive by radio from Peiping the text of a memorandum (infra), prepared by the Finance Ministry, explanatory of the imminent silver crisis in China.
446
Oct. 11 (462) From the Counselor of Legation in China (tel.)
Text of Finance Minister’s memorandum on the exportation of silver from China.
446
Oct. 12 To the Chinese Minister
Reiteration of Secretary Hull’s views as stated in his conversation with the Chinese Minister on October 2, and request that the communication be transmitted to Kung in reply to his inquiries of October 2.
449
Oct. 15 From the Chinese Minister
Information concerning the Chinese Government’s acknowledgment of U. S. views with respect to Chinese representations on the silver question, and appreciation of U. S. willingness to explore, through informal discussions, the larger problems connected with the subject.
450
Oct. 15 (489) From the Consul General at Shanghai (tel.)
Order issued by the Chinese Government (text printed) fixing customs duty and equalization charge on exports of silver.
450
Oct. 18 (473) From the Chargé in China (tel.)
Exchange of telegrams with Consul General at Shanghai (texts printed) relative to report that Central Bank of China intends to export silver free of duty, and National City Bank’s request for protest that this is discriminatory against all banks other than the Central Bank of China.
452
Oct. 18 (331) To the Chargé in China (tel.)
Intention to await detailed report from Shanghai on the question of silver shipments; advice that meanwhile the Department does not desire to lodge protest with the Chinese Government in connection with the question.
452
Oct. 24 (512) From the Consul General at Shanghai (tel.)
Transmittal of regulations governing the newly established Foreign Exchange Stabilization Committee as published October 23 by the Kuomin News Agency, and comment that provision 5 appears to justify the previously expressed apprehension that the Central Bank of China intends to export silver probably without payment of export duty.
453
Nov. 5 (352) To the Chargé in China (tel.)
Instructions to inform the banks concerned that the U. S. Government is not prepared to intercede on their behalf with respect to the imposition without prior notice of a duty on the export of silver, or the claim of the Chinese Customs that its control over export cargo continues until clearance of the exporting vessel.
454
Dec. 10 Memorandum by the Under Secretary of State
Record of the Chinese Minister’s informal transmittal of a communication from the Chinese Government (infra).
454
[Dec.
9(?)]
From the Chinese Minister of Finance to the Chinese Minister in Washington
Explanation of the Chinese silver dilemma and appeal to the U. S. Government to express its views concerning some form of cooperation to facilitate currency reorganization.
455
Dec. 10 To President Roosevelt
Transmittal of a copy of Kung’s communication of December 9, and information concerning the growing anti-American feeling in China due to the U. S. silver purchasing policy; inquiry as to whether the President would consider any modification of the present policy.
455
Dec. 18 Memorandum by the Economic Adviser
Discussion between Department officials and the Chinese Minister concerning a message (infra), drafted by the Treasury Department, to be transmitted to the Chinese Government in response to its recent representations on the U. S. silver program.
456
Dec. 18 From the Treasury Department
Draft of a cable to be sent to the Central Bank of China by the Federal Reserve Bank of New York concerning the U. S. silver purchasing program, and an invitation to send a Chinese representative to discuss further details of the matter.
457
Dec. 19 (596) From the Consul General at Shanghai (tel.)
For Hornbeck and Johnson from Young: Report of threatening financial panic in China, and recommendation of two alternatives to meet the situation.
(Footnote: Information that the Minister to China was on leave in the United States.)
457
Dec. 27 From the Chinese Minister
Transmittal of a cablegram from Kung expressing appreciation of the U. S. Government’s cooperative attitude in the silver situation, and enclosing a message from the Central Bank of China to the Federal Reserve Bank (text printed), accepting the invitation to send a representative to participate in further discussion of the problem.
458
Dec. 28 Memorandum by Mr. Raymond C. Mackay, of the Division of Far Eastern Affairs, of a Conversation Between the Chief of the Division, the Economic Adviser, and Mr. Jean Monnet of Paris
Exploratory discussion of proposals to stem the outflow of silver from China and to reestablish confidence in the Chinese financial structure.
459
Dec. 29 (272) To the Consul General at Shanghai (tel.)
For Young from Hornbeck: Advice that careful consideration is being given to the U. S. silver policy and its effects on the economy of China, and that helpful results are anticipated from the procedure outlined by the Federal Reserve Bank on December 18.
460
Dec. 31 From the Secretary of the Treasury
Information concerning a message from the New York Federal Reserve Bank to be transmitted to the Bank of China (text printed), advising that the procedure outlined on December 18 will be terminated in one week.
461
Dec. 31 Memorandum by the Secretary of State
Conversation with the Chinese Minister, who expressed concern over the announced termination of the recent silver arrangement between the United States and China and asked for assurance that no major silver-purchasing operations were in immediate contemplation.
461
[Page XLI]

Measures Taken by the United States for the Protection of American Lives and Property in China

[Page XLII][Page XLIII][Page XLIV]
Date and number Subject Page
1934 Jan. 10 (26) From the Minister in China (tel.)
From Peck: Chinese notification of possibility of bombing of Amoy and Foochow in military operations for the suppression of the Fukien revolt, and request that American oil companies be advised to label their properties clearly in order that they may be identified from the air.
462
Jan. 13 (33) From the Minister in China (tel.)
From Foochow: Report of the orderly retreat of the Nineteenth Route Army southward through Foochow and Nantai Island and of negotiations under way for the peaceful taking over of Foochow by Chinese Government through the Navy; advice that rebel regime at Foochow has agreed to the landing of a Japanese armed force on Nantai Island for the protection of Japanese lives and property.
463
Jan. 15 (37) From the Minister in China (tel.)
From Foochow: Information that Senior Consul has requested Doyen of diplomatic body to make representations to the Chinese Government against the serious situation caused by Nanking bombing of the Nineteenth Army line of retreat; advice that the British have landed an armed guard of 40 men and the U. S. S. Tulsa 20 armed marines within the past 2 days.
463
Jan. 15 (1273) To the Minister in China
Authorization to file a formal demand with the National Government for indemnity of pecuniary losses sustained by Dr. Casper C. Skinsnes in connection with his efforts to procure the release of Rev. Bert Nelson, a Lutheran missionary captured by the Chinese Communists in 1930.
464
Jan. 16 (41) From the Minister in China (tel.)
Further information on troop movements.
466
Jan. 17 (43) From the Minister in China (tel.)
Report from Foochow that practically all of the Nineteenth Route Army soldiers are believed to have withdrawn from Foochow and Nantai Island, and that the Nationalist flag is again flying at Foochow; also that American marines have returned to the U. S. S. Tulsa, the British and Japanese landing forces to withdraw shortly.
467
Mar. 3 (720) From the American Minister in China to the Chinese Acting Minister for Foreign Affairs
Renewal of representations against forcible occupation by the Nationalist Army of American missionary property in the Province of Fukien.
467
Mar. 13 (2586) From the Minister in China
Advice that the latest information on the Skinsnes case is that the money will be recovered.
(Footnote: Payment on February 19, 1936, by the Chinese Government of $4,000 Chinese currency in settlement of this claim.)
469
July 20 (221) To the Minister in China (tel.)
Information and instructions for reply to the Ministry for Foreign Affairs concerning Chinese charges against the Baptist mission in Western Yunnan and the alleged political activities of Rev. William M. Young and his two sons, Harold and Vincent.
470
Aug. 2 (334) From the Minister in China (tel.)
To the Commander in Chief of the United States Asiatic Fleet: Transmittal of three telegrams from the Consul at Foochow reporting the movement of Communist bandit troops toward Foochow and requesting the dispatch of a U. S. naval vessel to Pagoda Anchorage.
471
Aug. 3 (337) From the Minister in China (tel.)
Information that U. S. S. Sacramento has been ordered to proceed to Pagoda Anchorage.
472
Aug. 17 (2921) From the Minister in China
Report of assurances from General Ho Ying-chin, Chairman of the Peiping Military Council, concerning measures for protection of American citizens in the Western Hills and other districts not far from Peiping.
472
Aug. 27 From the Vice Consul at Foochow (tel.)
Advice that presence of U. S. naval vessels is not now considered necessary but that one should be ready to return to Foochow immediately.
472
Sept. 13 (413) From the Minister in China (tel.)
Review of the Young cases and the question of their protection and personal safety; suggestion that William Young be urged by the Baptist Foreign Mission Board to depart from Yunnan and his sons to confine themselves strictly to mission work as defined by the treaties.
473
Oct. 10 (460) From the Chargé in China (tel.)
From Yunnanfu, October 9: Report of imminent Communist concentration in the Province of Kweichow and suggestion that all foreigners from that Province be evacuated, possibly through Yunnan.
To Canton: Recommendation that all Americans withdraw from threatened areas before means of communication are interrupted.
474
Oct. 14 From the Consul at Canton (tel.)
Report of withdrawal of Americans from eastern and northern stations to Anshun and Tuhshan.
475
Oct. 17 (472) From the Chargé in China (tel.)
Telegraphic report, October 15, from Yunnanfu of increasing Communist menace to safety of Americans in Kweichow and proposed arrangements for Vice Consul Smith to proceed to Kweiyang to assist with evacuation; instructions to Yunnanfu for immediate evacuation of Americans without awaiting arrival of the Vice Consul.
To the Counselor of Legation at Nanking: Instructions to address a formal note to the Foreign Minister requesting assurance of protection of Americans in Kweichow and facilitation of their withdrawal if such action becomes necessary.
475
Nov. 19 (1515) To the Chargé in China
Review of additional information concerning the Young cases and suggestion that the Legation, in view of conclusions previously drawn by the Vice Consul at Yunnanfu and endorsed by the Legation, refrain from further representations unless new developments arise.
(Footnote: Decision of Baptist Foreign Mission Board not to return the Harold Youngs to China; Rev. William M. Young’s departure from Yunnan for the United States on November 1.)
476
Nov. 20 (532) From the Chargé in China (tel.)
From Hankow: Information that, in view of Communist troop movements to the western part of Hunan Province, Americans in that area have been advised to withdraw.
478
Nov. 23 (3155) From the Chargé in China
Advice that the Foreign Ministry has again been requested, pending referral of the Young cases to the Department for instructions, to protect the lives and property of the missionaries in question.
478
Dec. 12 (81) From the Consul General at Nanking (tel.)
Report of capture of missionary J. C. Stam and his wife and infant by Communist bandits in southern Anhwei; advice that urgent representations have been made to the Provincial and National Governments to take immediate steps for their release.
479
Dec. 13 (384) To the Chargé in China (tel.)
Information concerning the discovery of the bodies of Mr. and Mrs. Stam; instructions for representations on behalf of the child, who is still missing, and for arrest and punishment of the culprits.
479
Dec. 14 (85) From the Consul General at Nanking (tel.)
From the Commander of the U. S. S. Monocacy: Receipt of official report from the Provincial Government of Anhwei confirming the murder of the Stams, the recovery of their bodies, and the unknown status of the child.
480
Dec. 14 (86) From the Consul General at Nanking (tel.)
Summary of further details concerning the capture and death of the Stam family as reported by the Vice Consul at Nanking, who interviewed American missionaries and officers of the U. S. S. Monocacy.
480
Dec. 17 (89) From the Consul General at Nanking (tel.)
Advice that the Stam child is safe at Wuhu; that George Atcheson, Jr., Consul at Nanking, has been instructed to proceed to Wuhu and other points, if necessary, to collect additional information, bring the bodies to Wuhu, and represent the Consulate General at the burial.
481
Dec. 18 (581) From the Chargé in China (tel.)
From Peck to the Commander of Yangtze Patrol, December 17: Request that a vessel be stationed at Wuhu for reassurance of Americans who have been advised to concentrate there in view of the northward movement of well-armed Communist troops from southern Anhwei.
483
Dec. 18 (583) From the Chargé in China (tel.)
From Peck: Information that the. Panay left Nanking December 18 for Wuhu and that practically all American citizens in southern Anhwei are now reported to be in Wuhu.
483
Dec. 19 (389) To the Chargé in China (tel.)
Request that Peck make representations to the Foreign Office relative to the situation in Anhwei Province and for the safety of American citizens.
483
Dec. 21 (590) From the Chargé in China (tel.)
Increasing tenseness of the situation in Hunan as reported by five American Catholic missionaries; advice that Peck has been instructed to bring the matter to the attention of the Foreign Office immediately and to request protection for Americans there.
484
Dec. 21 (591) From the Chargé in China (tel.)
Advice that all Americans have been evacuated from southern Anhwei except those at Wuhu and that three gunboats (American, British, and Japanese) are now at Wuhu.
484
Dec. 25 (599) From the Chargé in China (tel.)
Résumé of the basic facts concerning the Stam case which will appear in Consul Atcheson’s detailed report of his investigation at Wuhu.
485
Dec. 28 (397) To the Chargé in China (tel.)
Instructions for formal note to Foreign Office (text printed) making strong representations in the Stam case.
486
Dec. 30 (606) From the Chargé in China (tel.)
Information from Peck that the bodies of the Stams have reached Wuhu; that Peck has been instructed to make oral representations in the light of the Department’s instruction No. 397, December 28, but opinion that the proposed note to the Foreign Office should await the receipt of Atcheson’s full report of his investigation.
487
Dec. 31 (91) From the Consul General at Nanking (tel.)
To the Legation: Advice that Atcheson has been instructed while in Wuhu for the Stam funeral to take official action giving results of the examination of the bodies and to collect any supplementary information concerning the capture of the Stams and conditions then existing in the Tsingteh area.
488
1935 Jan. 3 (3) From the Chargé in China (tel.)
Delivery of a formal note to the Foreign Office dated January 2, along lines of Department’s previous instructions, amended to conform with recent information and Atcheson’s report.
488
Jan. 3 (1) From the Consul General at Nanking (tel.)
Résumé of Atcheson’s report of the funeral, testimony of the Stam servants, and facts concerning the examination of the bodies; advice that full report will follow.
489
[Page XLV]

Attitude of the Department of State on the Export to China of Arms or Munitions, Including Military Aircraft

[Page XLVI][Page XLVII]
Date and number Subject Page
1934 Apr. 13 (167) From the Minister in China (tel.)
Receipt of aide-mémoire from the Minister of War requesting that no aeroplanes or military weapons of any kind be sold to any province or municipality in China unless they are covered by huchaus (permits) issued by the Central Government of China; advice that the Legation is endeavoring discreetly to ascertain whether similar request has been made of other Legations.
(Footnote: Information that similar representations had not been made to other Legations.)
490
Apr. 20 From the Chinese Minister
Information that Chinese regulations concerning the importation of war materials into China from other countries require official huchaus from the Central Government or permits from the proper Legations, and that any departure from this procedure will render such goods liable to confiscation.
490
Apr. 28 (196) From the Minister in China (tel.)
Formal note from the Foreign Office, April 21 (text printed), enumerating regulations concerning the shipment of war materials from abroad into China and reiterating representations against certain alleged violations of the usual procedure.
491
Apr. 28 Memorandum by the Assistant Chief of the Division of Far Eastern Affairs of a Conversation With the Chinese Minister
Discussion of the Chinese request that export licenses be withheld unless shipments of arms and munitions destined for China are covered by official huchaus; Department’s desire to be more adequately informed with respect to the factors underlying such a request.
492
May 3 (199) From the Counselor of Legation in China (tel.)
Information from Vice Minister for Foreign Affairs that identic formal notes were addressed to other interested powers on April 21, and that China desires U. S. cooperation in preventing shipments of arms not covered by Chinese Government huchaus.
493
May 7 Memorandum by the Assistant Chief of the Division of Far Eastern Affairs
Further discussion with the Chinese Minister, who was told that the Department, although inclined to acquiesce in the Chinese request, would prefer to learn the attitude of other interested governments before reaching a final decision.
493
May 8 (141) To the Minister in China (tel.)
Instructions to obtain a list of the powers to which identic notes were addressed by the Chinese Government on April 21, and to request an expression of views from the representatives of the governments concerned.
494
May 15 (209) From the Minister in China (tel.)
List of countries to which identic notes were addressed by Chinese Government.
496
May 17 (213) From the Minister in China (tel.)
Advice that inquiry has been made of Belgian, British, French, German, Italian, Japanese, and Spanish Legations as to the attitude of their Governments toward the Chinese request but that no Legation has any definite information to date in the matter.
496
May 19 (218) From the Minister in China (tel.)
Information that the British Government has indicated adherence to its present policy provided that the Chinese Government can enforce its import regulations and that other governments conform accordingly.
497
May 28 Statement Issued by the Department of State
Revised regulations in regard to the export to China of arms and munitions of war.
497
May 28 (156) To the Minister in China (tel.)
Authorization to inform the Foreign Office of certain changes in U. S. procedure effected in compliance with Chinese requests of April 20 and 21 with the understanding that the Chinese Government will enforce its regulations uniformly in respect to all imports of arms and munitions of war; request that the Consulates General at Hong Kong and Canton be instructed to study carefully British procedure in connection with the movement of arms and munitions, including aircraft, through Hong Kong to China.
499
June 2 To the Secretary of Commerce
Information concerning revised regulations pertaining to exportation of arms and munitions to China.
500
June 7 (2774) From the Minister in China
Information concerning the Japanese attitude toward recent Chinese requests.
501
June 27 (2810) From the Minister in China
Receipt of Foreign Office note enclosing a set of regulations governing duty exemptions on articles other than munitions of war imported into China for the use of foreign armed forces stationed in China and requesting compliance therewith; advice that other interested Legations have received similar notes, but that none, except the Japanese, have reached a decision although they have expressed dissatisfaction with the plan. Legation’s opinion that the U. S. reply should contain a simple statement concerning the impracticability of the regulations.
502
June 30 (942) From the Consul General at Hong Kong
Report on the British procedure at Hong Kong in connection with the shipment of arms and munitions, including aircraft, to China.
504
July 21 (199) From the Vice Consul at Yunnanfu
Observations on the nondiscriminatory application of Chinese arms export regulations by Yunnan provincial authorities.
506
Aug. 4 (265) From the British Chargé
Statement of British policy as related to the arms export restrictions, and inquiry as to the U. S. position on the question.
506
Aug. 10 To the British Chargé
Information concerning U. S. procedure in regard to arms and munitions exports to China; request to be informed of conclusions reached by the British Government upon completion of its consideration of the subject, particularly with respect to interpretation of what constitutes military aircraft.
508
Aug. 11 Memorandum by the American Minister in China of a Conversation With the French Chargé in China
Oral reading to the French Chargé, upon inquiry, of the U. S. reply to the Chinese Government concerning control of shipments of munitions of war; information concerning French arms shipments to Kwangsi and Kwangtung Provinces through Hong Kong.
511
Aug. 27 (1440) To the Minister in China
Authorization to reply to the Chinese Government substantially as suggested in despatch No. 2810, June 27, if and when similar action is taken by principally interested colleagues.
512
Oct. 11 (3025) From the Chargé in China
Receipt of information indicating inability of the National Government to enforce its regulations with respect to war munitions exports into territory under the control of the Southwest Political Council or into Yunnan Province; advice, however, that the situation does not impose disadvantages upon American exporters in comparison with exporters of other nationalities.
513
Oct. 24 (1056) From the Consul at Hong Kong
Report on the procedure followed at present by the Hong Kong Government in granting licenses for the exportation of arms and munitions from Hong Kong to China, and other circumstances surrounding the arms traffic in Hong Kong.
513
Oct 25 Memorandum Prepared in the Division of Far Eastern Affairs
Report on the shipment from the United States to China, Hong Kong, and Macao of arms and munitions of war for the period January 1, 1932, to October 22, 1934.
516
Nov. 2 (3092) From the Chargé in China
Advice that, in view of further notification by the Foreign Office of intention to enforce regulations with respect to importation of supplies for the foreign armed services in China, communications similar to that authorized by the Department have now been addressed to the Foreign Office by the U.S., British, and French Legations.
518
Nov. 20 (3147) From the Chargé in China
Receipt of further information from the Foreign Office, November 8, concerning the purpose behind the Chinese Government’s desire to control importation of supplies to foreign armed services in China; Legation’s reply, reiterating its position in the matter but expressing a willingness to consider any reasonable modification of the present procedure which will afford protection to Chinese revenue by preventing irregular practices.
519
Dec. 12 (396) From the British Ambassador
Explanation of the British position concerning the export of aircraft from Great Britain to China, and inability to endorse the U.S. definition of military aircraft; comments on U.S. exporters’ complaints against disadvantageous shipping regulations in Hong Kong.
521
[Page XLVIII]

Proposal of the Chinese Government That a New Treaty With the United States Be Negotiated to Replace the Commercial Treaty of October 8, 1903

[Page XLIX]
Date and number Subject Page
1934 Jan. 9 (6) To the Minister in China (tel.)
Formal reply (text printed) to Foreign Office note of December 23, 1933, requesting that Chinese Government supply further information as to its plans and proposals for negotiation of a new treaty. Instructions to inform British colleague of substance of the notes.
523
Jan. 11 (28) From the Minister in China (tel.)
Advice that the U. S. note has been mailed to Peck for delivery to the Foreign Office on January 13.
524
Jan. 11 From the British Embassy
Advice that China has asked British Government for negotiation of a new treaty to replace the Sino-British Treaty of 1902; that no reply has been sent pending receipt of further information from Peiping.
524
Jan. 23 (56) From the Minister in China (tel.)
Foreign Office acknowledgment, January 18 (text printed), of U. S. note of January 13, and expression of China’s desire to abrogate the existing treaty provisions concerning extraterritoriality and inland river and coastal navigation.
525
Mar. 13 (64) To the Minister in China (tel.)
Background information concerning the problem of extraterritoriality for Peck’s guidance in an informal discussion with a responsible Chinese official; Department’s view that there is need for reconsideration of the Chinese policy of taking up with each of the various powers separately the question of extraterritorial jurisdiction in China.
526
Mar. 22 (132) From the Minister in China (tel.)
Request for clarification of the Department’s instruction No. 64, March 22, as to whether the Department proposes joint rather than separate negotiations between the powers and China concerning extraterritoriality, inasmuch as Japanese participation in any joint discussions at this time would be likely to create an embarrassing situation.
529
Mar. 27 (141) From the Minister in China (tel.)
Offer of two suggestions for meeting the Chinese request for negotiation of a new commercial treaty.
529
Apr. 4 (95) To the Minister in China (tel.)
Instructions to acknowledge Chinese note of January 18 stating that the U. S. Government is giving consideration to the questions raised therein, but to hold in abeyance Department’s instruction No. 64, March 22, pending receipt of British views on the subject.
530
Apr. 4 (317) To the Ambassador in Great Britain
Instructions to discuss informally with the Foreign Office the Department’s views concerning revision of the Sino-American Treaty of 1903 and especially the question of extraterritoriality; to ascertain the status of negotiations for revision of the Sino-British Treaty of 1902; and to ascertain the British attitude toward possibility of approaching problems on parallel lines and with synchronized action.
530
June 2 (158) To the Minister in China (tel.)
Information that the British Minister in China has been instructed by his Government to keep in touch with his American colleague in any discussions that may arise on the question of extraterritoriality.
532
June 5 (229) From the Minister in China (tel.)
British Legation’s receipt of authorization to negotiate with the Chinese on general treaty revision matters but withhold consideration of revision of the extraterritorial clauses of any treaty until discussions of extraterritoriality have reached a mature stage with other powers; advice that no action has been taken as yet upon this authorization.
533
June 14 (248) From the Minister in China (tel.)
Exchange of views with the British Minister and general agreement that nothing should be done at present but to await further inquiry by the Chinese.
533
June 15 (172) To the Minister in China (tel.)
Concurrence in the Minister’s view that no further action is required as the matter now stands; authorization, however, to take similar action if the British Minister receives instructions to carry out previous authorization as set forth in telegram No. 229, June 5.
534
July 6 (291) From the Minister in China (tel.)
Information that the British Legation on June 21 acknowledged the Foreign Office note concerning the Sino-British treaty and stated that it had been forwarded to the British Government for consideration.
535

Disinclination of the American Government to Raise its Legation in China to the Status of an Embassy

[Page L]
Date and number Subject Page
1934 Mar. 3 Memorandum by the Chief of the Division of Far Eastern Affairs
Conversation with the Italian Ambassador, who related information from Rome that the Chinese Minister said he “was going to raise” the Chinese Legation there to the rank of Embassy and implied similar action at Washington, London, and Paris.
535
Sept. 25 (84) To the Ambassador in Italy (tel.)
Confidential information from the Italian Embassy that the Italian Government has decided to raise its Legation in China to the grade of Embassy; instructions to ascertain if possible conclusiveness of the reported decision and reasons therefor.
536
Sept. 26 (206) From the Ambassador in Italy (tel.)
Report on the probable reasons for raising the Italian Legation at Peiping to the status of Embassy, the two most significant being the influence of Ciano, son-in-law of Mussolini, and Italy’s opposition to Japan.
537
Sept. 26 (208) From the Ambassador in Italy (tel.)
Transmittal of press release announcing the Italian decision to raise its diplomatic representation in China to the rank of Embassy.
537
Sept. 27 (311) To the Minister in China (tel.)
Summary of information received to date concerning the recent decision of the Italian Government with respect to its diplomatic representation in China.
538
Sept. 27 (211) From the Ambassador in Italy (tel.)
Further information concerning the decision of the Italian Government to locate its Embassy at Shanghai; Foreign Office comment, upon inquiry, that consultation with other powers concerning the contemplated change in diplomatic status was not necessary in this instance.
539
Sept. 28 Memorandum by the Secretary of State
Conversation with the Chinese Minister, who inquired whether the U. S. Government would be disposed to raise its Legation in China to the rank of Embassy as Italy has proposed to do.
539
Sept. 29 (708) From the Ambassador in France (tel.)
Report of French and British concern over the Italian decision to raise its Legation in China to an Embassy.
540
Oct. 9 (220) From the Chargé in Japan (tel.)
Report of British inquiry as to the Japanese attitude toward the Italian decision to raise its Legation in China to an Embassy, and reply from the Foreign Office that Japan would not be influenced by Italy into any precipitate action.
540
Oct. 9 Memorandum by the Under Secretary of State
Conversation with the Chinese Minister, who was told that the United States has decided not to follow the Italian lead in raising its Legation in China to the rank of Embassy.
541
Oct. 9 (174) To the Chargé in Japan (tel.)
Advice that the Department has informed the British Embassy of its view that the present is not an opportune time to make a change in its diplomatic representation to China and that the Department would first confer with interested governments before making a change of this character; further advice that the Japanese Embassy was also orally informed to this effect.
541
Oct. 22 Memorandum by the Under Secretary of State of a Conversation With the British Ambassador
Concurrence in the understanding that the United States, Great Britain, and France stand together in the opinion that the present is not the proper time to establish Embassies in Peiping, and further, that neither of the three powers will take such action without previous consultation with the other two.
541
Nov. 9 (246) From the Chargé in Italy (tel.)
Report of Italian announcement, November 9, of the appointment of Lojacono, Italian Ambassador to Turkey, as Ambassador to China.
542
[Page LI]

Efforts for the Consideration of American Claims Outstanding Against China

[Page LII][Page LIII]
Date and number Subject Page
1934 Jan. 20 (47) From the Minister in China (tel.)
Discussion between Wang Ching-wei, President of Executive Yuan and Acting Foreign Minister, and Counselor of Legation Peck concerning Chinese nonacquiescence in the American proposal for the establishment of a Sino-American claims commission; Wang’s offer of two alternate suggestions for adjustment of debt situation.
542
Feb. 8 (1291) To the Minister in China
Instructions for presentation of claims for losses resulting from the looting of American property; advice that the Department is studying the question of ownership of property in the hands of Chinese who act as sales agents of American nationals, and the status of claims for losses of such property.
543
Feb. 16 (41) To the Minister in China (tel.)
Instructions to inform the Chinese Government of the U. S. opinion that its reasons for refusing to cooperate in the establishment of a claims commission are wholly inadequate; further instructions assiduously to press the Chinese Government toward acceptance of the American proposal.
544
Feb. 20 (93) From the Minister in China (tel.)
Request for authorization to join in British draft joint memorandum (text printed) protesting against Chinese default in the service of the Hukuang Railway loan agreement of 1911.
546
Feb. 21 (49) To the Minister in China (tel.)
Authorization to sign the British joint memorandum and suggestions for minor changes in phraseology.
547
Mar. 21 (127) From the Minister in China (tel.)
Receipt of Foreign Office note (excerpt printed) proposing a discussion of debt procedure between delegates appointed by the Chinese Ministries of Foreign Affairs, Finance, Communications and Railways with U. S. delegates; suggestion that Foreign Office be advised that proposal is unsatisfactory and designed to delay a definite solution of the matter.
547
Mar. 22 Memorandum by the Chief of the Division of Far Eastern Affairs of a Conversation With the Chinese Minister
Chinese Minister’s inquiry as to the Department’s attitude toward the latest Chinese proposal of a separate bureau to study the claims question; Hornbeck’s comments concerning the apparent indifference of the Chinese Government toward effecting an equitable solution, and advice that the Department is considering the latest Chinese proposal but has not yet reached a conclusion.
548
Mar. 27 (78) To the Minister in China (tel.)
Concurrence in the Minister’s suggestion concerning Chinese proposal reported in his telegram No. 127, March 21, and instructions also to inform Foreign Office that no adequate or convincing objections have been offered to date against the American proposal for a joint claims commission.
550
Apr. 18 (29) From the Consul General at Nanking (tel.)
Information concerning a resolution passed by the Executive Yuan, April 17, to the effect that all American claims of unquestionable validity would be officially acknowledged upon presentation by the U. S. Government, and that a tribunal would be created for consideration of the doubtful claims if the quantity of claims justified such action.
551
Apr. 18 (181) From the Minister in China (tel.)
Opinion that the Chinese action reported in telegram No. 29, April 18, represents a diplomatic gesture prompted by the present Sino-Japanese crisis.
551
Apr. 19 (119) To the Minister in China (tel.)
Instructions for Peck to obtain as promptly as possible a written statement from the Chinese Government confirming the implied offer outlined in telegram No. 29, April 18; request for the Legation’s views on the Chinese offer.
552
Apr. 21 (186) From the Minister in China (tel.)
Opinion that, although the Chinese request for a list of American claims appears to be sincere, the move is an additional bid for delay and subterfuge; belief, however, that the Department should supply a selected list of unquestionable claims and await developments.
552
Apr. 24 (192) From the Minister in China (tel.)
Unsigned memorandum received by Peck from Dr. Wang in person, April 21 (text printed), confirming the Chinese resolution of April 17; suggestion that Peck be authorized to present an acknowledgment of the memorandum to the Foreign Office stating that the proposal has been forwarded to the Department.
553
Apr. 26 (128) To the Minister in China (tel.)
Authorization for Peck to follow the procedure outlined in telegram No. 192, April 24; concurrence in the Legation’s views set forth in telegram No. 186, April 21, and authorization to proceed accordingly.
553
Apr. 26 (2691) From the Minister in China
Substance of comments by Mr. Suma, Secretary of the Japanese Legation, concerning the Japanese policy of forbidding individual creditors to make individual arrangements with Chinese railways; opinion that the real Japanese motive is to retain unliquidated obligations in a form which will lend itself more readily to use as diplomatic pressure.
554
May 29 (225) From the Minister in China (tel.)
Suggestion for a change of procedure in the presentation of the list of American claims to the Chinese Government, as of possible help in securing the establishment of a claims commission.
554
June 1 (157) To the Minister in China (tel.)
Approval of proposed procedure, with certain instructions, including suggestions that no looting claims be included in the list and no attempt made to state the legal basis of the claims presented.
555
June 6 (231) From the Minister in China (tel.)
Request for the Department’s approval to include all looting claims as a measure calculated to convince the Chinese Government of the desirability of the establishment of a claims commission.
556
June 8 (163) To the Minister in China (tel.)
Authorization to include looting claims provided that the remaining points of instruction No. 157, June 1, are followed.
556
June 30 (282) From the Minister in China (tel.)
Request for authorization to sign a British memorandum to the Foreign Office protesting default on June 15 of the service of the Hukuang loan.
557
July 5 (197) To the Minister in China (tel.)
Authorization to sign the British memorandum with certain minor changes in phraseology.
(Footnote: Information that the suggested changes were incorporated in a joint memorandum dated August 10, 1934.)
557
Aug. 27 (2940) From the Minister in China
Information concerning the Foreign Office reply to the joint memorandum regarding Hukuang loan pleading insufficiency of customs revenues.
558
Oct. 6 Memorandum of Conversation, by the Counselor of Legation in China
Further discussion with Wang Ching-wei of the American proposal for the establishment of a claims commission, and indication from Dr. Wang’s remarks that the Chinese Government has made no further progress toward acceptance of the plan in toto than adoption of the resolution of April 17 by the Executive Yuan.
558
Oct. 12 To Mr. Thomas W. Lamont of J. P. Morgan & Co.
Department’s views concerning the proper approach to be made to the Chinese Government in connection with its obligations under the Hukuang loan agreement.
560
Oct. 25 From the American Group of the China Consortium
Recommendation that the Department urge other interested governments toward stronger representations to the Chinese Government concerning its obligations under the Hukuang loan in view of reliable information that the Foreign Minister’s plea of insufficient customs revenues appears to be a statement contrary to fact.
561
[Page LIV]

Restrictions by China upon the Importation of Certain Industrial Chemicals

Date and number Subject Page
1934 Aug. 22 (2928) From the Minister in China
Background information concerning the unsuccessful attempt of an American firm to secure a permit from the Saltpeter and Sulphur Bureau of Kiangsi for the importation into China of certain industrial chemicals; opinion that, in view of China’s right to restrict the traffic in such commodities on the basis of classifying them as munitions of war, and in the absence of discrimination against American merchants, no valid complaint can be registered against the policy of the Chinese Government.
562
Oct. 22 (1493) To the Chargé in China
Concurrence in the Legation’s view on the industrial chemicals question.
563

Representations Against Restrictions Imposed by the Cantonese Authorities upon the Sale of Liquid Fuel by Foreign Companies

Date and number Subject Page
1934 Jan. 16 (39) From the Minister in China (tel.)
Advice that, pending receipt of further information concerning the granting by Chinese authorities at Canton of subsidies to native oil distillers, the Legation is taking no action on behalf of American oil companies.
564
Jan. 31 (2495) From the Minister in China
Information concerning U. S. and British representations to both Foreign Office and local officials at Canton protesting discrimination against foreign oil companies in the collection of the kerosene tax by the action of the provincial government in granting a rebate to Chinese refiners in the form of a subsidy.
565
May 7 (139) To the Minister in China (tel.)
To Canton: Authorization to remind the Southwest Political Council and Canton officials on some opportune occasion of their obligation to observe treaties between China and the foreign powers.
565
June 14 (2782) From the Minister in China
Information concerning representations by U. S. and British Consuls General at Canton in an attempt to forestall the establishment of a quota system at the insistence of the government-protected refiners, and their receipt of verbal assurances that no quota project was being considered.
566

Efforts of the United States to Meet Situation Created by Imposition in China of Taxes Considered Unfair to American Trade

[Page LV]
Date and number Subject Page
1934 Oct. 2 (316) To the Minister in China (tel.)
Authorization to discuss informally with the appropriate Chinese officials the unfortunate situation created by the collection in various parts of China of illegal and discriminatory taxes coupled with the proposed application of an import tax on American leaf tobacco.
566
Oct. 3 (1466) To the Minister in China
Instructions to make representations to the Chinese Government to the effect that certain of the means for assisting domestic industry as outlined in the Industrial Encouragement Act would appear to contravene various treaty commitments of the Chinese Government and that in consequence the Legation reserves such rights of American nationals as may be adversely affected by the operation of the Act.
567
Nov. 9 (3129) From the Chargé in China
Advice that Department’s instructions were carried out after discussion with British Legation, which is addressing a formal note to the Chinese Government citing various causes of complaints on behalf of British capital in China, none of which would appear to afford a basis for representations against the Industrial Encouragement Act.
(Footnote: Information from the Minister, March 7, 1935, of Foreign Office assurance that the Act would not interfere with the utilization of foreign capital and technical cooperation.)
568
Nov. 28 (543) From the Chargé in China (tel.)
Information concerning repeated Foreign Office requests that U. S. and other interested Legations comply with the Chinese regulations pertaining to the business tax law. Advice that the French Legation has refused to comply, while the British Legation is considering granting permission to tax British nationals on a nondiscriminatory basis, under certain safeguards, and desires the Department’s views concerning agreement to a similar line of action.
570
Dec. 6 (377) To the Chargé in China (tel.)
Advice that the Department is not in a position to endorse the British proposal; that, however, the Department would consider an alternative procedure in the event that other interested governments indicate a willingness to acquiesce in the tax question.
571
Dec. 31 (401) To the Minister in China (tel.)
Instructions to act in accordance with Department’s telegram No. 316, October 2, in connection with any further action toward the proposed increase in leaf tobacco import duties.
572
1935 Jan. 9 (10) From the Chargé in China (tel.)
Representations by Counselor of Legation Peck at Nanking, in accordance with Department’s No. 401, December 31, and Chinese reply that the increased import duty on leaf tobacco has already been officially sanctioned but not yet enforced.
(Footnote: Report from Peck, January 28, 1935, that the Chinese Government had abandoned its intention to double the import duty on leaf tobacco.)
572
[Page LVI]

Denial to American Firms of Right to Formal Hearing Under the Chinese Customs Rules of 1868

Date and number Subject Page
1934 Jan. 9 (2459) From the Minister in China
Summary of developments during the past year in respect of arbitrary action by the Customs toward American firms; advice that the Inspector General of Customs has been furnished a list of the principal cases involved.
573
Jan. 18 From the Inspector General of Chinese Customs to the American Minister in China
Observations and comments concerning developments in the Socony-Vacuum, Frazar, and International Truck and Storage Company cases at Lungkow, Tsingtao, and Shanghai, respectively; reiteration of the Inspectorate’s policy opposing arbitrary action by the Customs against merchants.
457
Feb. 1 From the American Minister in China to the Inspector General of Chinese Customs
Inability of the Legation to accept the position of the Customs on certain issues involved in the cases previously discussed; further representations in view of recent developments in the Frazar case and notification of intention to bring the matter to the attention of the Foreign Office.
579
Feb. 10 (706) From the American Minister in China to the Chinese Acting Minister for Foreign Affairs
Representations against the Foreign Ministry’s interpretation of the Treaty of 1928 as implying the relinquishment by the United States of its rights established by prior treaties, and insistence that the cases of confiscation involving property of American citizens seized by the Custom House authorities be adjudicated under the Customs Rules of 1868.
581
Mar. 7 From the Chinese Acting Minister for Foreign Affairs to the American Minister in China
Reiteration of the Chinese position in regard to Rules of 1868, and refusal to recognize the protest and reservations made by the Legation.
583
Nov. 5 (1503) To the Chargé in China
Instructions to ascertain the views of other interested governments concerning the Chinese Government’s disregard of the Rules of 1868; summary (text printed) of treaty provisions for examination in connection with the question of the establishment and present status of the Rules of 1868.
585

Reservation of American Rights in Proposed Changes for Control of Pilotage at Shanghai

[Page LVII][Page LVIII]
Date and number Subject Page
1931 July 8 (1082) From the Minister in China
Request for instructions as to the attitude that the Legation and Consul General at Shanghai should assume in the event that the Chinese Government attempts to enforce recent regulations pertaining to Government control of pilotage at Shanghai.
591
Sept. 29 (352) To the Minister in China (tel.)
Opinion that the present system of control of the Shanghai pilot service may not be legally changed without the consent of the interested powers; request for views of the Legation and Consulate General at Shanghai, and of the other interested foreign representatives as to the attitude to be taken if China should attempt to put new regulations into effect.
592
Oct. 15 (776) From the Minister in China (tel.)
From Shanghai, October 14: Request for further clarification of the Department’s views concerning control of pilotage; division of opinion among colleagues as to the applicability of references cited in support of the Department’s views.
593
Nov. 2 (403) To the Minister in China (tel.)
List of treaty citations for study in connection with regulations governing pilots at Shanghai.
593
Nov. 25 (1006) From the Minister in China (tel.)
From Shanghai, November 24: Report of meetings of the Pilotage Board on October 23 and November 10 upon completion of investigation of conditions of the Shanghai pilotage service; request for instructions as to the attitude to assume at the next meeting on December 1, in view of a new proposal for compulsory pilotage of vessels of 450 feet.
594
Nov. 28 (441) To the Minister in China (tel.)
Reiteration of the Department’s opinion that the present system of the Shanghai pilotage service may not be legally changed without consent of the interested powers; instructions, however, for Consul General at Shanghai to cooperate with his colleagues and make no objection to proposed changes, but reserving rights of American nationals under existing system.
595
Dec. 8 (1058) From the Minister in China (tel.)
From Shanghai, December 5: Information that proposal concerning compulsory pilotage of vessels over 450 feet would discriminate against American ships; intention to propose that compulsory pilotage, if it is desirable, should apply to all oceangoing vessels.
596
Dec. 11 From the Consul General at Shanghai (tel.)
Inquiry as to whether compulsory pilotage exists by law in principal U. S. ports for merchant vessels.
597
Dec. 14 To the Consul General at Shanghai (tel.)
Advice that under the respective State laws pilotage is required in principal U.S. ports for all vessels engaged in foreign trade.
597
1934 Apr. 10 (1338) To the Minister in China
Further comments in support of the Department’s opinion that the General Pilotage Regulations of 1868 cannot be revised by the Chinese Government without the consent of the powers still possessing extraterritorial rights in China.
597
Apr. 10 (745) From the American Minister in China to the Chinese Acting Minister for Foreign Affairs
Representations against the unilateral abrogation or modification of the pilotage regulations by the Chinese Government; U. S. willingness, however, to consider any reasonable proposals for changes in the regulations provided certain safeguards are assured.
599
May 3 (2702) From the Minister in China
Information from Shanghai concerning efforts of the Ministry of the Navy to negotiate through irregular channels the question of pilotage authority to the exclusion of the Chinese Maritime Customs, while the same question is under negotiation by the interested Legations with the Foreign Office and the Ministry of Finance.
600
June 21 (258) From the Minister in China (tel.)
Steps taken by the Chinese Government to meet the objections of the interested powers to the new pilotage regulations unilaterally established; indication of emergency measures, however, for the renewal of pilot licenses on July 1 in the event that the Commissioner of Customs refuses renewal.
601
June 21 (260) From the Minister in China (tel.)
From Shanghai, June 21: Advice that the Acting Harbor Master has been authorized to extend the licenses of pilots who are members of the Shanghai Pilots Association for 90 days from July 1.
602
June 23 (263) From the Minister in China (tel.)
From Counselor of Legation Peck, Nanking, June 21: Receipt of a copy of the Revised Provisional Pilotage Regulations, June 1934, the revision having been made on the basis of representations from interested powers.
603
June 25 (185) To the Minister in China (tel.)
Department’s approval of the precautionary plan for renewal of pilot’s licenses referred to in Minister’s telegram No. 258, June 21.
603
June 29 (279) From the Minister in China (tel.)
Report of the successful completion of examination for pilot’s license by Apprentice Pilot C. F. Erbe, an American citizen whose case had been delayed by the Chinese Government.
603
Sept. 18 (298) To the Minister in China (tel.)
General instructions to cooperate with interested colleagues and to continue working toward a satisfactory arrangement which will provide adequate safeguards for the American interests involved and at the same time be acceptable to the Chinese authorities.
604
Oct. 22 (480) From the Chargé in China (tel.)
Report that the Chinese, as a result of Japanese and French representations against modification of the present regulations, may drop the matter of revision.
604
Dec. 20 (588) From the Chargé in China (tel.)
Advice that British negotiations with the Inspector General of Customs have resulted in agreement on the revised pilotage regulations embodying amendments which had been sought by the principally interested powers other than Japan and France; belief that the Chinese Government will offer this proposal officially and that the U. S. Government should accept it with certain provisions, and reserving certain treaty rights.
604
Dec. 26 (395) To the Chargé in China (tel.)
Department’s concurrence in the recommendations set forth in telegram No. 588, December 20, and authorization to take action accordingly.
606
[Page LIX]

American Interest in Problems Affecting the International Settlement at Shanghai

Date and number Subject Page
1934 Mar. 17 (125) From the Minister in China (tel.)
Comments on a proposal by the Japanese Consul General concerning the policing of extra-Settlement roads area, which has been forwarded to Central Government by the Chinese authorities at Shanghai; recommendation that the proposal be accepted, in view of the prolonged negotiations attending the question, but that active support be withheld.
607
Mar. 21 (71) To the Minister in China (tel.)
Department’s approval of the Legation’s recommendation, and authorization to instruct Shanghai accordingly; instructions, however, to keep in mind the Department’s views that the matter should be settled by local agreement.
608
May 10 (7933) From the Consul General at Shanghai to the Minister in China
Comments on certain items in the Japanese Consul General’s proposal and the attitude of the British Consul General and the Shanghai Municipal Council concerning them.
608
Oct. 5 (450) From the Minister in China (tel.)
Facts concerning a judicial dispute between the Shanghai Municipal Council and the Chinese District Court with respect to the arraignment of certain Chinese detectives of the International Settlement police force; opinion that the Council should be supported in its stand, set forth in its letter of September 19 to the Court (excerpt printed).
(Footnote: Department’s approval, October 10, of Legation’s recommendations.)
610
Dec. 6 (3176) From the Chargé in China
Receipt of information as to the fundamental views of the Japanese Government on the scope of the proposed extra-Settlement roads agreement; advice that the Legation has instructed the Consul General at Shanghai to avoid discussion of the Japanese demands and to refrain from endorsing the Japanese fundamental views.
613

Concurrence in Proposed Alteration of the Status of the Kuling Estate in Kiangsi, China

[Page LX]
Date and number Subject Page
1933 Dec. 1 (385) To the Minister in China (tel.)
Advice that the Department questions the advisability of opening negotiations toward rendition of the Kuling Estate to China in view of the possible impairment of the rights of American lot owners and the uncertain status of the administration of the area involved.
614
Dec. 28 (938) From the Minister in China (tel.)
Indication of circumstances under which Legation would interpose no objection to opening of negotiations and would instruct Consul at Hankow accordingly; inquiry as to Department’s approval.
(Footnote: Department’s approval, December 29.)
615
1934 Nov. 15 (525) From the Chargé in China (tel.)
Advice that the British Legation has been authorized to conclude the proposed agreement with certain minor changes in the draft; recommendation that Consul at Hankow be authorized to concur in the conclusion of the agreement according to the British version.
616
Nov. 20 (365) To the Chargé in China (tel.)
Authorization to concur in the conclusion of the agreement as outlined in telegram No. 525, November 15.
(Footnote: Information that rendition of the Kuling Estate to China took place on January 1, 1936.)
616

Re-Registration of Title Deeds to Real Property of Americans in China

Date and number Subject Page
1934 Mar. 26 (1327) To the Minister in China
Approval of certain recommendations previously offered by the Legation with respect to the applicability to American nationals of Chinese regulations governing the registration and taxation of land in China.
617

Registration of American and Other Foreign Publications Under the Chinese Press Law

Date and number Subject Page
1934 Jan. 18 (13) To the Minister in China (tel.)
Authorization to reply to a Foreign Office note of November 17, 1933, stating U. S. willingness. to endorse voluntary pro forma registration of American publications with the Ministry of Interior but refusal to endorse any compulsory measures or to recognize applicability of the Chinese press laws to American nationals.
(Footnote: Information that the U. S. and British Legations replied to the Foreign Office on February 14, 1934.)
618
Nov. 20 (3152) From the Chargé in China
Chinese Government’s recommendation that all Chinese and foreign newspapers or periodicals published in China be registered before the end of February 1935; advice that the Legation has reiterated its position in the matter and has instructed the consular officers concerning certain safeguards to be pointed out to those American publishers who find it expedient to register.
618

Chinese Censorship Restrictions Upon American Motion Pictures in China

[Page LXI]
Date and number Subject Page
1934 Apr. 9 From the Counselor of Legation in China
Account of the successful conclusion of lengthy negotiations by the Metro-Goldwyn-Mayer Studios to obtain permission to take motion pictures in China for use in connection with a film production of the novel “The Good Earth.”
620
Apr. 23 From the Counselor of Legation in China
Report on recent changes in the official organization controlling the motion picture industry in China whereby control over motion picture matters has passed in large measure from the Government to the Kuomintang.
622
July 2 (1400) To the Minister in China
Instructions for the guidance of Counselor of Legation Peck in connection with informal representations against Chinese censorship of amateur motion pictures.
624

Objection by China to Operation of an Unlicensed Radio Station by an American Citizen in Hupeh; Registration of American and Other Radio Receiving Sets

Date and number Subject Page
1934 Mar. 22 (2603) From the Minister in China
Receipt of a report from the Consul General at Hankow concerning a Chinese demand that an unlicensed radio station operated by Rev. R. J. Mueller, an American citizen, at Shihnan, Hupeh, be dismantled; Legation’s recommendation that the Consul General withhold his proposed suggestion that Mueller acquiesce in the Chinese demand pending further inquiry into the Chinese laws.
625
Apr. 19 (182) From the Minister in China (tel.)
To Shanghai: Instructions to refrain from suggesting that Americans register their receiving sets and to request information from the Bureau of International Telegraphs as to regulations requiring such registration and as to the authority under which such regulations were issued.
627
Apr. 21 (122) To the Minister in China (tel.)
Approval of the Legation’s instructions to Shanghai and request for information concerning developments.
628
May 3 (134) To the Minister in China (tel.)
Approval of the Legation’s proposed instructions to the Consul General at Hankow concerning the unlicensed radio station operated by Mueller.
628
Aug. 8 (1426) To the Minister in China
Nonobjection to the procedure adopted by the Legation concerning the voluntary registration of American-owned receiving sets.
628
Oct. 3 (3015) From the Minister in China
Advice that the Consul General at Hankow has been authorized to acquiesce in a Chinese proposal for the solution of the Mueller case with a reservation designed to permit a continuance of efforts to obtain a license for the operation of the station should Mueller desire to resume its use.
629
[Page LXII]

JAPAN

Political Developments in Japan and Efforts to Improve Relations With the United States

[Page LXIII][Page LXIV][Page LXV][Page LXVI]
Date and number Subject Page
1934 Jan. 11 (639) From the Ambassador in Japan
Comments on the significance to the political life of Japan of the birth of Crown Prince Akihito; opinion that intrigues to compel the Emperor to abdicate will subside and the political stability of the Imperial Court will be strengthened.
631
Feb. 1 (32) From the Chargé in Great Britain (tel.)
Information that Japanese Ambassador-designate Saito will sail for America on February 3; that he has expressed his desire to seek from President Roosevelt an assurance that the United States would not use force in its future relations with Japan.
633
Feb. 2 Memorandum by the Chief of the Division of Far Eastern Affairs
Attitude which should be assumed by the Department in the event that Ambassador Saito seeks from the President an assurance that the United States will not use force in its future relations with Japan or some assurance as to U. S. peaceful intent toward Japan.
634
Feb. 16 (16) To the Ambassador in Japan (tel.)
Receipt by the President of an invitation from the Pan Pacific Association to visit Japan; instructions to express informally to the Vice President of the Association the President’s appreciation of the invitation and his inability to accept due to the pressure of his public duties.
635
Feb. 28 Memorandum by the Assistant Chief of the Division of Far Eastern Affairs
Conversation, in London, with the Japanese Ambassador to Great Britain, who expressed the opinion that a policy of nonspectacular action to build up friendship would best serve to improve relations between the United States and Japan, and who advocated an adjustment of the immigration question.
636
Mar. 2 From the Japanese Ambassador
Communication from the Japanese Foreign Minister (text printed) advising Ambassador Saito of a recent Japanese order for the suppression of certain types of publications considered harmful to Japan’s relations with foreign powers.
637
Mar. 9 (702) From the Ambassador in Japan
Résumé of press reports concerning a meeting of the Budget Committee of the House of Peers on February 23 at which discussions were centered upon the importance of creating a mutual understanding between the United States and Japan with regard to their respective positions and the question of concluding an agreement establishing the division of the Pacific Ocean into Japanese and American zones.
638
Mar. 22 Memorandum by the Secretary of State
Conversation with the Italian Ambassador, who was told, upon inquiry, that no important subjects have been discussed between the United States and Japan other than matters contained in the recent exchange of notes between Secretary Hull and Japanese Foreign Minister Hirota.
(Footnote: Information that a similar inquiry was made by the Belgian Ambassador on the same day.)
639
Mar. 26 (139) From the Minister in China (tel.)
From Nanking, March 24: Comments made to the press by the Foreign Office concerning the recent U. S.-Japanese exchange of notes confirming the fact that no important negotiations are under way.
639
Apr. 3 Memorandum by the Secretary of State
Transmittal by the Japanese Ambassador of translations of Japanese news reports concerning the U. S.-Japanese exchange of notes, which were unanimously favorable in tone and comment.
640
Apr. 5 (726) From the Ambassador in Japan
Comments as to the frequency with which so-called “unofficial envoys of good will” have left Japan for the United States in recent months, and information concerning others scheduled for the near future; opinion that these visits are officially inspired and have some definite object in view.
640
Apr. 6 (732) From the Ambassador in Japan
Opinion that Foreign Minister Hirota has definite plans for proposing an agreement for the establishment of American and Japanese zones in the Pacific Ocean, possibly in connection with the forthcoming naval disarmament conference.
643
Apr. 6 (736) From the Ambassador in Japan
Discussion of the military influence in Japan during the past two years.
644
Apr. 12 Memorandum by the Under Secretary of State
Conversation with the Chinese Minister, who was told, upon inquiry, that there was no truth to reports originating in the Japanese press that Japan had made a proposal to the United States for a treaty of nonaggression; further, that the United States had made no counterproposal concerning a joint nonaggression pact between the United States, Japan, China, and the Soviet Union.
648
Apr. 13 Memorandum by the Chief of the Division of Far Eastern Affairs
Inquiry by the Italian Ambassador as to reports in circulation in Moscow that a joint nonaggression pact between United States, Japan, the Soviet Union, and China is under consideration; advice to Ambassador that such reports are groundless.
649
May 4 (772) From the Ambassador in Japan
Report of the celebration of the eightieth anniversary of the signing of the first treaty between the United States and Japan.
649
May 16 Memorandum by the Secretary of State
Informal conversation with Ambassador Saito on existing U. S.-Japanese relations; receipt of an unsigned memorandum from the Ambassador containing his views on certain topics, and Secretary Hull’s agreement to confer further with him after examining the memorandum.
650
May 29 Memorandum by the Secretary of State
Further conversation with Ambassador Saito concerning his confidential memorandum submitted May 16, which contained eight points proposing a “joint declaration” of policy; Secretary Hull’s nonacceptance of the suggestion, and his comments on each point (substance printed).
653
June 9 To President Roosevelt
Transmittal of the Secretary’s memorandum of May 29 (supra) for background information, and suggestion that no encouragement be given Ambassador Saito to think or to report to his Government that the President is favorably disposed toward his proposal.
661
June 11 (94) To the Ambassador in Japan (tel.)
Denial of press reports that the President contemplates or desires a meeting in Hawaii for a discussion with high Japanese officials.
662
June 13 (122) From the Ambassador in Japan (tel.)
Opinion that such stories as reported in Department’s telegram No. 94, June 11, are trial balloons and should be allowed to die of inanition.
662
June 15 (100) To the Ambassador in Japan (tel.)
Advice that Ambassador Saito’s suggestion for a “joint declaration” of policy has been definitely rejected; that no matters of policy were discussed between the President and Saito upon the latter’s farewell call.
663
June 15 (101) To the Ambassador in Japan (tel.)
Instructions to inform Hirota orally that the President has no thought of conferring with Japanese officials during his Hawaiian cruise.
663
June 18 (128) From the Ambassador in Japan (tel.)
Intention of Hirota to curb local press speculations in view of information that the President’s trip is to be solely recreational.
664
June 22 (131) From the Ambassador in Japan (tel.)
Information that the Vice Minister for Foreign Affairs was the “high official” responsible for a press report to the New York Herald Tribune, June 21, concerning Japan’s desire for a nonaggression pact with the United States.
664
June 26 Memorandum by the Chief of the Division of Far Eastern Affairs of a Conversation With the Japanese Ambassador
Discussion of certain general topics which the Ambassador might like to consider in connection with his trip to Japan.
664
June 29 (106) To the Ambassador in Japan (tel.)
Advice that United Press despatch from Washington, June 26, to the effect that Saito is returning to Japan after sounding out the President and the Secretary of State on certain important topics, is entirely misleading and that there has been no negotiation on any subject.
667
July 5 (883) From the Ambassador in Japan
Résumé of press comments reflecting the perceptible hardening of public opinion on the question of abolishing the naval ratio principle and demanding parity in defense in connection with the naval disarmament conference in 1935.
667
July 6 (147) From the Ambassador in Japan (tel.)
Belief that the choice of certain men for the key positions in the new Cabinet indicates a general trend away from aggressive nationalism.
671
July 16 To the Ambassador in Japan
Observations concerning the activities of George Bronson Rea, an American citizen employed nominally by the “Manchoukuo” authorities as a “counselor to the Ministry of Foreign Affairs”, who in fact engages in political propaganda in Washington; desire that Foreign Minister be informed of U. S. objections to the situation.
672
July 26 Memorandum by the Chief of the Division of Far Eastern Affairs
Conversation with the Japanese Chargé, who reported an unfortunate incident at Mukden—the intrusion by a Japanese youth into the American Consulate General and an attempted assault upon Vice Consul Hall; expression of Japanese regrets.
675
July 27 (231) To the Minister in China (tel.)
Instructions to take no action in Mukden incident pending further word from the Department; advice that at present the Department is not disposed to make an issue on the basis of information before it.
676
July 29 (329) From the Minister in China (tel.)
From Mukden, July 28: Information that the Japanese youth responsible for recent attack on U. S. consular officer is being deported to Japan for examination by police authorities; suggestion that action be deferred pending receipt of further facts and information concerning legal aspects of the case.
676
Aug. 6 (134) To the Ambassador in Japan (tel.)
Request for the text of an article which appeared in the Japan Advertiser, August 5, by General Tanaka, former Japanese Military Attaché at Washington, in which the word “insolent” was used in connection with comments on President Roosevelt’s report concerning the U. S. naval establishment at Hawaii; request for the Ambassador’s comments.
677
Aug. 7 (173) From the Ambassador in Japan (tel.)
Transmittal of the passage from Tanaka article as requested (text printed); advice that the word “insolent” might be taken to apply either to the President or to a series of American acts, and opinion that the matter should be brought to the attention of the Foreign Office.
677
Aug. 8 (136) To the Ambassador in Japan (tel.)
Instructions to make informal representations to the Foreign Minister concerning the Tanaka article.
678
Aug. 18 (181) From the Ambassador in Japan (tel.)
Advice that the Foreign Minister was sympathetic toward representations against the Tanaka article, and that the Japan Advertiser has been officially censured for publishing the obnoxious phrase.
679
Aug. 20 From the Ambassador in Japan
Advice that Foreign Minister has been informed in a friendly way concerning George Bronson Rea and his activities in Washington but that no representations were made.
(Footnote: Report from Consul at Dairen, August 31, of Mr. Rea’s return to Manchuria.)
679
Sept. 14 (157) To the Ambassador in Japan (tel.)
Expression of appreciation of Consul Chase’s careful handling and thorough presentation of the Mukden case; instructions, however, to take no further action with respect to the incident.
680
Nov. 2 Memorandum by the Assistant Chief of the Division of Far Eastern Affairs
Conversation with the Japanese Ambassador concerning willingness of Japanese Government to permit visits of American citizens to the Pacific islands under Japanese mandate upon assurance that no improper purposes were connected therewith.
681
Nov. 2 (398) From the Consul at Kobe
Summary of remarks made by a Japanese officer in a highly inflammatory and anti-American address to the Young Men’s and Ex-Soldiers’ Association of Suma, a suburb of Kobe, on October 29; opinion that naval discussions now in progress at London have undoubtedly stirred up anti-foreign feeling in Kobe and prompted speeches such as the one reported.
682
Nov. 5 Memorandum by the Chief of the Division of Far Eastern Affairs
Conversation with Japanese Ambassador, who reiterated willingness of his Government to permit visits to mandated islands of Pacific, including visits of naval vessels.
683
Dee. 11 (1079) From the Ambassador in Japan
Memorandum on the recent political tendencies in Japan and the strong nationalist feeling.
684
Dec. 29 (1116) From the Ambassador in Japan
Memorandum on the decline of foreign prestige attending the present Japanese drive toward a state of isolated self-sufficiency.
687

Protection of Japanese Lives and Property in the State of Arizona

[Page LXVII]
Date and number Subject Page
1934 Aug. 22 (143) To the Ambassador in Japan (tel.)
Information from the Japanese Chargé concerning reported instances of hostile acts directed against the persons and property of certain Japanese nationals engaged in farming in the State of Arizona; advice that apparently both Americans and Japanese are charged with having violated the Arizona alien land law but that there is no evidence of force being used. Instructions to inform the Foreign Office that none but lawful processes will be followed, and further to suggest that sensational discussion of the matter be discouraged.
690
Aug. 24 (189) From the Ambassador in Japan (tel.)
Advice that the pertinent facts of the Arizona incident have been brought to the attention of the Vice Minister for Foreign Affairs who has given assurance of cooperation in discouraging sensational discussion and expressed appreciation of the Department’s efforts.
691
Sept. 21 Memorandum by the Chief of the Division of Far Eastern Affairs of a Conversation With the Japanese Chargé
The Chargé’s expression of confidence that the Department will take appropriate steps toward insuring the safety and rights of Japanese nationals in Arizona.
692
Sept. 26 (184) From the Japanese Chargé
Representations against reported renewal of the anti-Japanese movement in Arizona, and request for protection of the lives and property of Japanese nationals residing in that State.
693
Sept. 29 To the Japanese Chargé
Information that the proper authorities of the State of Arizona have given assurances that appropriate protective measures had been taken and would continue to be taken.
694
Oct. 4 From the Governor of Arizona
Assurance of cooperation, and opinion that the incidents cited by the Japanese Embassy are attributable to communistic activities in the Salt River Valley at the present time.
694
Oct. 9 (221) From the Chargé in Japan (tel.)
Information that ultrapatriotic societies, by urging strong action in the Arizona case, have been causing considerable annoyance to the Foreign Office, which has tried to minimize the situation.
695
Oct. 9 To the Japanese Chargé
Information that the Governor of Arizona has given assurance that the courts of Arizona have the situation well in hand, and that every precaution will be taken to forestall any violence.
695
Oct. 9 (176) To the Chargé in Japan (tel.)
Advice that the Department is confident that the Arizona State authorities are giving appropriate attention to the situation, and that the Japanese Chargé in Washington has been so informed.
696
Oct. 11 Memorandum by the Under Secretary of State
Conversation with the Japanese Chargé, who requested the sending of Federal Agents to Phoenix in view of the fact that no arrests had been made; explanation that the question is under consideration by the Attorney General.
696
Dec. 10 (272) From the Ambassador in Japan (tel.)
Information that Hirota, upon being questioned in the House of Peers on the status of the Arizona case, gave his opinion that proper steps were being taken, and further suggested that the acts of violence were committed by aliens who wished to dissipate the relations between the United States and Japan.
697
Dec. 11 (203) To the Ambassador in Japan (tel.)
Advice that Department of Justice agents are investigating the affected area in Arizona and that the Governor has established an arbitration committee; comment that the agitation is not anti-Japanese but anti-alien in character.
697
Dec. 20 Memorandum by the Chief of the Division of Far Eastern Affairs
Conversations on December 18 and 19 with the Japanese Ambassador, who was informed of developments in the Arizona case, including excerpts from the report of Federal agents operating in the Salt River Valley.
698
[Page LXVIII]

Representations on Establishment of Oil Monopolies in Japan and Manchuria

[Page LXIX][Page LXX][Page LXXI][Page LXXII][Page LXXIII][Page LXXIV][Page LXXV][Page LXXVI][Page LXXVII][Page LXXVIII][Page LXXIX][Page LXXX]
Date and number Subject Page
1934 Mar. 2 (106) From the Minister in China (tel.)
Fruitless results of local representations against discrimination in the application of the “Manchoukuo” import tax on kerosene; suggestion that representations be made through the Ambassador at Tokyo toward elimination of the Japanese Army burning test which governs the classification of illuminating oils, and advice that British Legation is suggesting similar action.
699
Mar. 5 (39) From the Ambassador in Japan (tel.)
Data concerning impending Japanese legislation for petroleum control, and advice that British colleague has inquired, on behalf of British interests, as to future policy of administration of the law; suggestion that similar representations be made on behalf of Standard-Vacuum Co.
700
Mar. 8 (92) To the Ambassador in Great Britain (tel.)
Instructions to ascertain orally whether the British Foreign Office concurs in the U. S. view that the “Manchoukuo” customs practice concerning illuminating oils is discriminatory; if so, to inquire as to the possibility of lodging similar protests simultaneously at Toyko.
701
Mar. 13 (28) To the Ambassador in Japan (tel.)
Instructions to make an informal statement to the Foreign Office similar to that made by British colleague concerning future Japanese policy for petroleum control.
702
Mar. 14 (66) To the Minister in China (tel.)
Report from Embassy in Great Britain (text printed) indicating British disinclination to recommend representations suggested in Department’s telegram No. 92, March 8. Request for details of “Manchoukuo” customs practices, since Department may make representations independently.
702
Mar. 17 (126) From the Minister in China (tel.)
Desire of American oil interests in Manchuria to obtain a reclassification of tariff items; opinion that any representations in this connection should be made in accordance with despatch No. 106, March 2.
703
Mar. 22 (126) From the Ambassador in Great Britain (tel.)
Information that British Government is looking into the technical aspects of the discriminatory customs case in Manchuria; Foreign Office request for information concerning the U. S. decision on the whole question.
704
Mar. 29 (60) From the Ambassador in Japan (tel.)
Report of the Diet’s approval of the petroleum control law, but advice that the enforcing regulations have not been promulgated as yet.
704
Mar. 30 (85) To the Minister in China (tel.)
Information concerning instructions to the Embassy in London, requesting British views toward simultaneous representations in the event that the proposal of the American oil interests for a reclassification of tariff items is rejected by the Commissioner of Customs at Dairen.
705
Apr. 10 (160) From the Minister in China (tel.)
Indication that the British Embassy at Tokyo proposes to make representations in accordance with the U. S. suggestion as outlined in Department’s telegram No. 85, March 30; belief of Consul General at Mukden that similar U. S. representations have become desirable.
706
Apr. 12 (67) From the Ambassador in Japan (tel.)
Advice that the British Consul at Dairen has been authorized to associate himself with representations being made by the foreign oil companies on the matter of Dairen oil discrimination, but that no formal representations have been made as yet by the British Embassy.
706
Apr. 14 (167) From the Ambassador in Great Britain (tel.)
Information from Foreign Office that British Ambassador in Tokyo has been instructed to take action in concert with the U. S. Ambassador.
707
Apr. 16 (171) From the Minister in China (tel.)
Advice that the U. S. and British Legations agree that no representations should be made at Tokyo pending the outcome of local representations to the Dairen Commissioner of Customs by the oil companies.
707
Apr. 17 (175) From the Minister in China (tel.)
Opinion of U. S. and British Legations, upon further consideration, that representations in Tokyo should not be withheld, but should be made now with a view to obtaining favorable consideration of the tariff formula suggested by the companies to the customs authorities.
708
Apr. 19 (52) To the Ambassador in Japan (tel.)
Instructions to make representations at the Foreign Office with a view toward reinforcing the representations of the oil companies at Dairen.
708
Apr. 25 (74) From the Ambassador in Japan (tel.)
Advice that representations have been carried out in accordance with Department’s telegram No. 52, April 19.
708
Apr. 28 (81) From the Ambassador in Japan (tel.)
Oral information from the Foreign Office that two officials will be attending a consular conference in Manchuria in the near future, and at that time will make a thorough investigation of the problem of oil duties.
709
June 12 (243) From the Minister in China (tel.)
British suggestion for immediate representations to the Japanese Government concerning proposed establishment in the autumn of an oil monopoly of the Manchuria Petroleum Co.; desire for Department’s views.
709
June 19 (257) From the Minister in China (tel.)
Information from the Consul General at Mukden that the proposed legislation for the oil monopoly will be enacted about September, and his suggestion that any contemplated representations be made prior to September.
710
June 20 (180) To the Minister in China (tel.)
Inclination of the Department to favor U. S. and British concerted action on the “Manchoukuo” oil monopoly by informal representations to the Japanese Government prior to the establishment of the monopoly; instructions to ascertain attitude of U. S. Ambassador in Tokyo.
710
July 2 (286) From the Minister in China (tel.)
Telegram from the Ambassador in Japan, June 28 (text printed), expressing nonobjection to proposed action on Manchurian oil monopoly and suggesting possible bases for representations.
711
July 2 (868) From the Ambassador in Japan
Announcement made by the “Manchoukuo” Legation in Tokyo which would seem to envisage participation of the Japanese in the monopoly, but exclusion of other non-“Manchoukuo” capital; opinion that, if this proves to be the case, protest could be made to Japan on the ground of infringement of article 3 of the Nine-Power Treaty.
712
July 3 (142) From the Ambassador in Japan (tel.)
Summary of a British aide-mémoire left with the Foreign Minister on July 2, invoking article 3 of the Nine-Power Treaty. Concurrence in British Embassy’s view that the issue comprises an important test case of the open-door policy in Manchuria, and request for further instructions as to U. S. representations.
713
July 5 (112) To the Ambassador in Japan (tel.)
Authorization to make informal representations similar to the recent British aide-mémoire.
714
July 9 Memorandum by the First Secretary of Embassy in Japan of a Conversation With the Chief of the Commercial Affairs Bureau, Japanese Foreign Office
Disinclination of Kurusu to associate violation of treaty rights with the “Manchoukuo” oil monopoly question, and his concern over reports that an embargo on the exportation of crude oil to Japan is under consideration by foreign oil companies as a retaliatory measure against the Japanese Petroleum Control Law.
715
July 14 (304) From the Minister in China (tel.)
Information that the British Consulate at Mukden has now been instructed to make representations to the “Manchoukuo” authorities.
718
July 20 (220) To the Minister in China (tel.)
Instructions for the diplomatic missions in Tokyo, Peiping, and Manchuria, including Dairen, to report developments in the oil monopoly issue and to give careful consideration at all times to the question of advisability of making further representations either in Tokyo or in Manchuria. Instructions to repeat to Tokyo.
718
Aug. 3 (168) From the Ambassador in Japan (tel.)
Substance of Foreign Office reply, August 2, to the Ambassador’s informal representations with respect to the “Manchoukuo” oil monopoly, disclaiming any influence in connection with the proposal and recommending direct negotiations between the United States and “Manchoukuo” concerning the question of treaty contravention.
(Footnote: Information that British Embassy received an essentially similar memorandum on the same date.)
719
Aug. 8 (174) From the Ambassador in Japan (tel.)
Information from the British Ambassador concerning the “Manchoukuo” reply to recent British representations, stating that nonrecognition of “Manchoukuo” by the powers absolves the “Manchoukuo” government from any treaty obligations voluntarily assumed upon its establishment.
720
Aug. 11 (354) From the Minister in China (tel.)
Report on developments in the oil monopoly proposal as they will affect foreign oil interests in “Manchoukuo.”
720
Aug. 20 (182) From the Ambassador in Japan (tel.)
Opinion that further representations in Tokyo regarding Manchurian oil monopoly would be futile; suggestion, however, that the Department consider the expediency of discussing with the British Government the advisability of a partial or total embargo on exports of certain crude oils to Japan. Advice that British colleague concurs and is cabling his Government accordingly.
721
Aug. 20 (368) From the Minister in China (tel.)
From Mukden, August 18: Opinion that the rumored withdrawal of Soviet Neft oil interests from Manchuria is more probably connected with the increased Russo-Japanese tension than with the oil monopoly question.
(Footnote: Further information from Mukden, August 25, that Neft is apparently curtailing, if not completely discontinuing, its business in Manchuria.)
723
Aug. 22 (184) From the Ambassador in Japan (tel.)
Substance of further British representations to the Foreign Office to make an effort to dissuade the “Manchoukuo” authorities from proceeding further with the oil monopoly plan, or from similar action in breach of treaty stipulations or the open-door principle.
723
Aug. 28 To Mr. A. G. May of the Standard-Vacuum Oil Company
Résumé of developments arising out of representations made by the American Embassy at Tokyo respecting the Manchurian oil monopoly.
724
Aug. 28 (387) From the Minister in China (tel.)
Résumé of recent despatches from the Consul at Mukden, and his suggestion that the situation calls for prompt agreement between the foreign firms concerned on a common plan of action, and appointment of qualified negotiators in Manchuria as soon as the actual intentions of Japanese and “Manchoukuo” authorities are clarified.
725
Aug. 29 (149) To the Ambassador in Japan (tel.)
Instructions to make an informal reply to the Foreign Office memorandum of August 2, reiterating the U. S. position.
727
Aug. 31 (191) From the Ambassador in Japan (tel.)
Advice that an informal memorandum has been sent to the Foreign Office according to Department’s instructions; information that the Standard-Vacuum Oil Co., Rising Sun (Shell interests), and Texas Co. have agreed not to submit quotations to the Manchuria Oil Company, which is now requesting bids for crude oil for the refinery under constructions at Dairen.
727
Aug. 31 (151) To the Ambassador in Japan (tel.)
Résumé of suggestions by oil interests and of inclination of British Foreign Office looking toward possible joint representations by the British, Netherland, and U. S. Governments against Japanese petroleum regulations. U. S. willingness to consider any proposals from the British and Netherland Governments for such action.
728
Sept. 5 (196) From the Ambassador in Japan (tel.)
Information from Goold, general manager of the Standard-Vacuum Oil Co. in Japan, that the refusal of the three major companies to submit crude oil quotations for the Dairen refinery is being rendered valueless by the decision of two independent California oil companies to submit bids.
729
Undated Memorandum by the Counselor of Embassy in Japan of a Conversation With the Japanese Vice Minister for Foreign Affairs on September 5
General views of the Vice Minister concerning the oil question in Manchuria and enforcement of the petroleum control law in Japan.
729
Sept. 11 (358) To the Ambassador in Great Britain (tel.)
Instructions to report latest developments between the Foreign Office and the Embassy; receipt of confidential information that the British and Netherland Governments have already made representations to the Japanese Government.
730
Sept. 12 (519) From the Ambassador in Great Britain (tel.)
Comments of Foreign Office official concerning the U. S. attitude toward possible joint action; advice that no new information has been received from the Foreign Office.
731
Sept. 19 (205) From the Ambassador in Japan (tel.)
Substance of a Netherland aide-mémoire to the Foreign Office, September 18, setting forth the difficult position of the Netherland oil interests due to the Japanese petroleum control law.
731
Sept. 19 (529) From the Ambassador in Great Britain (tel.)
Foreign Office opinion that U. S. Government might wish to authorize informal representations in Tokyo on behalf of American oil interests similar to representations of British and Netherland Governments.
732
Sept. 21 (162) To the Ambassador in Japan (tel.)
Message for the Foreign Office (text printed), to be presented informally and orally, with respect to the adverse effects of the petroleum control law upon American oil interests in Japan.
733
Sept. 21 (365) To the Ambassador in Great Britain (tel.)
Instructions to inform the Foreign Office of the Department’s instructions to Tokyo, and to inquire whether the British Government, in view of the negative results of its representations made 2 months ago, would be willing to express substantially similar views to the Japanese Government.
734
Sept. 22 (960) From the Consul at Mukden to the Minister in China
Further observations on the oil monopoly in Manchuria.
735
Sept. 25 (213) From the Chargé in Japan (tel.)
Advice that representations were made, September 24, in accordance with Department’s telegram No. 162, September 21.
737
Oct. 5 (1001) From the Chargé in Japan
Observations on the oil problems in Japan and Manchuria, and in support of the proposal for U. S. control of crude oil exports to Japan.
737
Oct. 10 (222) From the Chargé in Japan (tel.)
Substance of renewed British representations to the Japanese Government on October 5 with respect to the petroleum control law.
740
Oct. 17 (1013) From the Ambassador in Japan
Report of opposition of the Japanese military to the proposed Manchurian monopoly for fear of retaliatory measures by foreign crude oil suppliers which would interfere with military needs in time of war.
741
Oct. 21 (478) From the Chargé in China (tel.)
From Mukden: Summary of an oral statement to representatives of the Standard-Vacuum Oil and the Asiatic Petroleum Companies by the “Manchoukuo” Finance Ministry, October 20 (text printed), concerning the administrative objectives of the monopoly and requesting certain information as to imports and sales of the companies for the determination of quotas by the monopoly.
742
Oct. 22 (232) From the Ambassador in Japan (tel.)
Opinion that any further action contemplated by the U. S. Government should be decided upon before the Petroleum Committee meets within the near future.
743
Oct. 24 (483) From the Chargé in China (tel.)
Advice that no reply has been made by the foreign oil representatives to the “Manchoukuo” statement of October 20. Opinion of Consul at Mukden that strong diplomatic representations would delay indefinitely the establishment of the monopoly; Legation’s suggestion that Consul General Ballantine, upon his transfer to Mukden, might be authorized to proceed to Hsinking for discussion of this and other pending matters.
744
Oct. 24 (484) From the Chargé in China (tel.)
Information on question of discrimination in the importation of kerosene into Manchuria and representations by foreign oil companies to the customs officials. Advice that British officials will take up matter informally at Hsinking, and Legation’s opinion that U. S. action should be withheld pending arrival of Consul General Ballantine.
745
Oct. 24 (485) From the Chargé in China (tel.)
Report of the Monopoly Bureau’s request to Chinese agents of the Standard-Vacuum Co. that delegates be sent to a meeting scheduled for October 26 at Hsinking for the purpose of selecting distributors of monopoly kerosene.
745
Oct. 24 Memorandum by the Chief of the Division of Far Eastern Affairs of a Conversation With the President of the Standard Oil Company of New Jersey
Discussion of the latest developments in the Japanese oil situation.
746
Oct. 26 (236) From the Ambassador in Japan (tel.)
Substance of statements made by Amau, Japanese Foreign Office spokesman, at a press conference, October 26, concerning Japanese position with respect to the proposed oil monopoly in “Manchoukuo”.
748
Oct. 26 (183) To the Ambassador in Japan (tel.)
Advice that the Department has not yet reached a decision on the suggestion pertaining to further representations as set forth in telegram No. 483, October 24, from China.
749
Oct. 26 (10) To the Ambassador in Great Britain (tel.)
Advice that U. S. concern and action with respect to the Japanese and “Manchoukuo” oil questions are in no way related to U. S. objectives and procedure at the London naval conversations, contrary to press stories from Tokyo.
749
Oct. 29 (238) From the Ambassador in Japan (tel.)
Opinion that in any further consideration of the oil problems, the petroleum control system in Japan and the proposed oil monopoly in “Manchoukuo” should be linked together; recommendation of further consideration of an embargo or restriction of U. S. crude oil exports to Japan in order to strengthen future representations in Tokyo.
750
Oct. 30 (496) From the Chargé in China (tel.)
Opinion of Consul at Dairen that oil companies should unite in formulation of a counterproposal to obtain some modification of the monopoly scheme.
751
Oct. 31 (184) To the Ambassador in Japan (tel.)
Reluctance of the Department to use an embargo or restriction of exports; opinion that practical steps toward solution of the oil question should originate with the British and Netherland Governments, inasmuch as their private interests are more involved than American interests.
752
Nov. 1 (502) From the Chargé in China (tel.)
From Mukden, October 30: Official announcement, October 30, by the “Manchoukuo” government, which appears to be a modification of the oral statement of October 20 and may represent a desire to come to terms with the oil companies.
753
Nov. 1 (241) From the Ambassador in Japan (tel.)
Substance of a Foreign Office memorandum of October 31, in reply to oral representations outlined in Department’s No. 162, September 21, explaining the scope and intention of the petroleum control law. Receipt of similar memorandums by the British Embassy and the Netherland Legation.
753
Nov. 2 (242) From the Ambassador in Japan (tel.)
Information from Amau concerning the expected completion within a day or two of the Foreign Office reply to the second U. S. informal protest against the proposed oil monopoly.
754
Nov. 6 (244) From the Ambassador in Japan (tel.)
Information concerning letters from the Ministry of Commerce and Industry to the foreign oil companies requiring them to submit their import and storage plans by November 15; advice that consultations are in progress inasmuch as the oil companies consider this an ultimatum.
754
Nov. 6 (245) From the Ambassador in Japan (tel.)
Summary of the Japanese reply to U. S. representations against the “Manchoukuo” oil monopoly, disclaiming any responsibility in the formulation of “Manchoukuo’s” industrial policy.
755
Nov. 8 (249) From the Ambassador in Japan (tel.)
Message from Goold for transmittal to Standard-Vacuum Oil Co. in New York (text printed), recommending defensive measures to forestall the ill effects of Japanese and “Manchoukuo” oil situations; information that a similar message has been transmitted to the Rising Sun Co. in London.
755
Nov. 8 (250) From the Ambassador in Japan (tel.)
Information from the Netherland Minister concerning his explanation of the oil situation to his Government and his recommendation that a united front be presented to the Japanese Government by the foreign oil companies in conjunction with their Governments.
756
Nov. 10 Memorandum by the Chief of the Division of Far Eastern Affairs of a Conversation With Mr. P. W. Parker of the Standard-Vacuum Oil Company
Further discussion of the oil problems, with particular reference to U. S. position on restriction of petroleum exports, prior to Mr. Parker’s departure for Tokyo as a representative of the New York office.
757
Nov. 16 (1060) From the Ambassador in Japan
Opinion that the stockholding provision of the petroleum control law is largely a military measure designed to build up oil reserves in Japan for use in case of war; inquiry as to whether the Department would consider the adoption of a new line of attack by claiming that forced oil storage by American firms to provide a war-time reserve for Japan conflicts with article 1 of the U. S.-Japanese treaty of commerce of 1911.
758
Nov. 22 Memorandum by the Under Secretary of State
Conversation with the British Ambassador relative to U. S.-British cooperation to date with respect to the oil problems in Japan and “Manchoukuo”; indication of Department’s assumption that the British Government desired to take the initiative in any governmental action inasmuch as British oil interests were involved to a greater degree than American interests.
759
Nov. 22 (254) From the Ambassador in Japan (tel.)
Information from the British Ambassador that he has received instructions to make renewed representations to Japan concerning the oil monopoly in “Manchoukuo”. His comment on British Government’s apparent misinterpretation of certain telegrams from its Ambassador in Washington on U. S.-British action and cooperation.
760
Undated Memorandum by the Consul General at Harbin of a Conversation With the Soviet Acting Consul General at Harbin on November 22
Refutation, in response to Soviet inquiry, of a report concerning an agreement between American and British oil interests to boycott Manchuria; discussion of the importance of maintaining the principle outlined in the Nine-Power Treaty.
761
Nov. 23 (193) To the Ambassador in Japan (tel.)
Summary of previous negotiations in cooperation with the British Government with respect to the oil questions. Instructions to ascertain the nature of the latest British representations on the Manchurian situation, and request for Ambassador’s opinion as to the advisability of another U. S. démarche to the Japanese Government similar to that of the British.
762
Nov. 24 (257) From the Ambassador in Japan (tel.)
Second request of the Commerce and Industry Department that British and American oil companies file their complete import plans for 1935; subsequent conference between Japanese officials and company representatives resulting in a proposal for modification of the stockholding provisions of the petroleum regulations.
764
Nov. 24 (258) From the Ambassador in Japan (tel.)
Message from Goold for transmittal to Standard-Vacuum Oil Co., New York, recommending acceptance of the modified stockholding proposal, provided it does not prejudice any contemplated action by the company or the Governments.
766
Nov. 24 (259) From the Ambassador in Japan (tel.)
Information, in reply to Department’s telegram No. 193 of November 23, concerning nature of British representations to the Foreign Office, November 24.
766
Nov. 27 (262) From the Ambassador in Japan (tel.)
Opinion, in reply to Department’s inquiry, that a further U. S. démarche in the “Manchoukuo” situation, similar to the recent British action, would be desirable.
768
Nov. 27 (603) From the Ambassador in Great Britain (tel.)
For Hornbeck from Dooman (adviser to the American delegation at the London preliminary naval conversations): Informal conversation with Foreign Office official, who indicated the British Government would favor concerted action between British and American oil companies on three specified conditions.
769
Nov. 28 (197) To the Ambassador in Japan (tel.)
Information from the Standard-Vacuum Co. representative concerning favorable reception by Standard and also by Shell interests in London of the proposal for stockholding modifications, provided Department agrees; Department’s nonobjection to the plan provided it meets with the approval of the oil companies and the U. S. and British Embassies in Tokyo.
770
Nov. 28 (198) To the Ambassador in Japan (tel.)
Instructions for an aide-mémoire to be handed to the Foreign Minister, similar to the recent British démarche, concerning the “Manchoukuo” monopoly.
771
Nov. 29 (545) From the Chargé in China (tel.)
From Mukden, November 28: Report of results of negotiations between the American company representatives and the monopoly authorities at Hsinking; conviction of company representatives that there is no advantage in compromising.
771
Nov. 30 (265) From the Ambassador in Japan (tel.)
Advice that no reply has been received by the Consulate at Dairen concerning its proposal for a reclassification of kerosene, and that the British Consul General at Mukden will make renewed informal representations to the “Manchoukuo” Government; inquiry as to Department’s attitude toward similar U. S. action.
772
Nov. 30 (419) To the Ambassador in Great Britain (tel.)
Instructions to inform Foreign Office of U. S. decision to make further representations to Japan concerning the “Manchoukuo” monopoly, and of the Department’s nonobjection to the Japanese proposal for submission of provisional import plans by the oil companies, provided it meets with the approval of the companies and the U. S. and British Embassies in Tokyo.
773
Dec. 1 (266) From the Ambassador in Japan (tel.)
Delivery to the Foreign Office, December 1, of aide-mémoire based on Department’s instructions in telegram No. 198, November 28.
773
Dec. 5 (422) To the Ambassador in Great Britain (tel.)
Instructions for the guidance of Dooman and Hugh Millard (Second Secretary of Embassy) in further conversation with Foreign Office official.
774
Dec. 6 (376) To the Chargé in China (tel.)
Authorization to instruct Consul General at Mukden to take action, orally and informally, similar to the renewed representations of his British colleague concerning Manchurian import tariff on kerosene.
776
Dec. 7 (614) From the Ambassador in Great Britain (tel.)
Report of the results of the conversation between Foreign Office officials and Dooman and Millard.
776
Dec. 8 (271) From the Ambassador in Japan (tel.)
Information that British Ambassador has been instructed to make renewed representations concerning Japanese petroleum law provided U. S. Ambassador takes similar action; summary of British provisional aide-mémoire, with comments and request for Department’s instructions.
777
Dec. 8 (200) To the Ambassador in Japan (tel.)
Instructions to take no action other than to inform the British Ambassador that in the light of reports of recent conversations held in the British Foreign Office, the Department does not understand the issuance of such instruction at this stage.
779
Dec. 10 (201) To the Ambassador in Japan (tel.)
Information concerning the conversations between Dooman and British Foreign Office officials; advice that before reaching a decision on Ambassador’s telegram No. 271 of December 8, the Department intends to inform the British Foreign Office of its opinion as to the inadvisability of making a further démarche until the oil company senior representatives have had an opportunity to confer with Japanese officials.
779
Dec. 10 (428) To the Ambassador in Great Britain (tel.)
Request for clarification of Foreign Office position with respect to recent instructions to the British Ambassador in Japan concerning a further démarche.
782
Dec. 11 (620) From the Ambassador in Great Britain (tel.)
Advice that the recent instructions to the British Ambassador in Japan are construed as further informal representations; observation that British and American oil companies are apparently not in entire agreement as to the course to be followed in preparing the way for their proposed consultations with the Japanese authorities. Intention to await further instructions before making any approach to the Foreign Office.
783
Dec. 13 (274) From the Ambassador in Japan (tel.)
Information concerning recent conversations between British and American Embassy officials and Kurusu of the Foreign Office, in which Kurusu urged that foreign oil companies join with Japanese oil interests in an effort to obtain a modification of the petroleum law; suggestion for U. S. oral and informal representations (substance printed), and advice that the British Ambassador is recommending to the Foreign Office that his previous instructions be revised accordingly.
785
Dec. 13 (275) From the Ambassador in Japan (tel.)
Substance of suggestion by Kurusu for negotiations in regard to the “Manchoukuo” oil monopoly; opinion that adoption of Kurusu’s suggestion would imply acceptance of the monopoly system and weaken the U. S. treaty position.
(Footnote: Department’s concurrence, December 17.)
787
Dec. 13 (1083) From the Ambassador in Japan
Report of developments in “Manchoukuo” oil monopoly situation, and information that the oil companies have steadily refused to commit themselves with the “Manchoukuo” officials for fear of removing the negotiations from a plane of international principles to one of simple commercial transactions.
787
Dec. 14 (204) To the Ambassador in Japan (tel.)
Advice that the Department will consult London before reaching a conclusion concerning the suggestion set forth in Ambassador’s telegram No. 274, December 13.
789
Dec. 14 (431) To the Ambassador in Great Britain (tel.)
Instructions to ask the Foreign Office to collaborate on the working out of a tentative understanding as to the course to be followed in U. S. and British instructions to Tokyo, and to report the exact terms to the Department for confirmation or comment.
789
Dec. 15 (276) From the Ambassador in Japan (tel.)
Information that, on December 13, the Netherland Minister made formal representations to the Japanese Government, similar to the British representations of November 24 on the “Manchoukuo” oil monopoly.
791
Dec. 18 (628) From the Chargé in Great Britain (tel.)
Results of conversation with Foreign Office officials in accordance with instructions outlined in Department’s telegram No. 431, December 14.
791
Dec. 20 (434) To the Chargé in Great Britain (tel.)
Advice that Ambassador in Japan is being informed of the essential points in telegram No. 628, December 18, with authorization, provided British colleague concurs, to make informal oral representations to the Japanese Government; instructions to inform the Foreign Office and report any developments.
793
Dec. 20 (210) To the Ambassador in Japan (tel.)
Transmittal of information received in telegram No. 628, December 18, from Great Britain, and suggestion that Ambassador confer with British colleague; authorization for action as outlined in Ambassador’s telegram No. 274, December 13, provided British Ambassador takes similar action and American oil interests so desire.
793
Dec. 20 (29) From the Consul General at Mukden to the Chargé in China
Report of results of concerted British and American representations concerning the “Manchoukuo” kerosene import tariff, and advice that no mention of “Manchoukuo” or the “Manchoukuo” Government was made in the representations.
795
Dec. 22 (283) From the Ambassador in Japan (tel.)
Concurrence of British colleague with regard to the proposed further representations to the Japanese Government; advice that the two Embassies will confer jointly with the local oil company representatives before proceeding with representations.
796
Dec. 24 (215) To the Ambassador in Japan (tel.)
Instructions to give assurance to the Standard-Vacuum representatives in Tokyo that the inconclusive adjournment of the London naval conversations will in no way alter the U. S. Government’s attitude toward the oil situations in Japan and “Manchoukuo”.
797
Dec. 25 (284) From the Ambassador in Japan (tel.)
To Shanghai, December 24: Message (text printed) from the local Standard-Vacuum representative to Goold outlining the procedure recommended by the British and American Embassies 1 and requesting instructions.
797
Dec. 27 (285) From the Ambassador in Japan (tel.)
Advice that, upon concurrence of the oil companies, the British and American Embassies made oral representations substantially as outlined in Ambassador’s telegram No. 274, December 13, which were received sympathetically by Kurusu.
798
Dec. 29 (286) From the Ambassador in Japan (tel.)
Report of Kurusu’s reply (substance printed), and advice that special representatives of the oil companies will proceed to Tokyo for discussions with the Japanese officials about January 7.
798

Trade Relations Between the United States and Japan; Voluntary Restriction of Exports to the United States by the Japanese

[Page LXXXI][Page LXXXII]
Date and number Subject Page
1933 Dec. 13 Memorandum by the Assistant Chief of the Division of Far Eastern Affairs
Conversation with the Japanese Chargé who raised a question concerning news reports that various American manufacturers and producers were anxious to restrict the import of various commodities from Japan, particularly tuna fish and lead pencils, and further expressed the hope that such small and purely commercial questions could be solved in a manner mutually satisfactory to both nations.
799
1934 Feb. 2 Memorandum by the Chief of the Division of Far Eastern Affairs of a Conversation With the Japanese Chargé
Chargé’s presentation of an informal memorandum (infra).
800
Feb. 2 From the Japanese Chargé
Information that representatives of the Japanese tuna industry are being sent to California with a view to bringing about an understanding between American and Japanese tuna industries; hope that U. S. Government will cooperate with Japanese Government in promoting this understanding.
801
Feb. 19 Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs
Conversation concerning the Department’s desire to enter into some form of “gentlemen’s agreement” with the Japanese Government restricting imports of Japanese lead pencils into the United States, so that a tariff increase, recommended by the Tariff Commission for the protection of the Code for pencil manufacturers, might be avoided.
801
Mar. 2 Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs
Further discussion of proposals connected with the question of restricting importation of lead pencils from Japan.
803
Apr. 2 Memorandum by the Assistant Secretary of State
Statement (text printed) of an informal arrangement with respect to the restriction of the importations of lead pencils from Japan, initialed by U. S. and Japanese representatives.
804
May 10 Memorandum by the Secretary of State
Conversation with the Japanese Ambassador concerning the U. S. attitude toward entering into negotiations for bilateral reciprocity trade agreements.
806
May 22 To the Consul General at Tokyo (tel.)
Request for statistics concerning the export of rag rugs from Japan to the United States for the period between May 11 and May 31, in view of the possibility of conclusion of an agreement similar to that covering lead pencils.
807
June 20 Memorandum by the Secretary of State
Conversation with the Japanese Ambassador and his Counselor concerning U. S.-Japanese trade relations; Ambassador’s presentation of a memorandum (infra) embracing the views of the Japanese Government.
807
Undated From the Japanese Embassy
Desire for adjustment of U. S.-Japanese interests in certain industries where competition occurs, in order to avoid difficulties in the broad lines of trade relations between the two countries.
(Footnote: Handed to the Secretary of State by the Japanese Ambassador, June 20.)
809
June 27 Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs
Conversation with Japanese officials, who expressed their Government’s desire to enter into conversations looking toward adjustment of tuna fish imports from Japan before any U. S. restrictive measures are taken. Approval of Japanese suggestion if matter cannot await a careful study of the entire question of U. S.-Japanese commercial relations.
810
Undated From the Japanese Embassy
Information concerning the efforts of the Japanese Government and the Exporters Association to restrict the exportation of china and porcelain ware to the United States, and expression of hope that the U. S. Government will negotiate with the Japanese Government before taking any action such as imposing additional duty or quota restrictions.
(Footnote: Received in the Department July 6.)
812
July 6 From Mr. Eugene H. Dooman of the Division of Far Eastern Affairs to the Assistant Secretary of State
Substance of the memorandum received from the Japanese Embassy July 6 (supra), with request for instructions as to reply.
813
Undated To the Japanese Embassy
Advice that the effects of the measures undertaken by the Japanese Exporters Association will be considered in connection with an investigation of imports of china and porcelain ware into the United States, and that the U. S. Government will confer with the Japanese Government in the event that restrictive measures become necessary.
(Footnote: Handed to the Japanese Chargé on July 16.)
813
Aug. 24 Memorandum by the Chief of the Division of Far Eastern Affairs of a Conversation With the Japanese Chargé
Discussion of Japanese apprehension concerning the effect of the pending Philippines tariff act on Japanese-Philippine trade.
814
Oct. 4 (996) From the Chargé in Japan
Information concerning the indiscriminate use by Japanese manufacturers of American trademarks and the simulation of American packages, labels, and containers.
815
Undated Statement by the Secretary of State, October 30
Opinion that, in view of the recently revealed Japanese naval demands at the London conversations, the United States should not agree to any Philippine trade restrictions against which Japan could complain until the entire combinations of problems relating to the Far East are settled.
(Footnote: Information that statement was telephoned to the Assistant Secretary of State by the Executive Assistant to the Secretary of State from Pinehurst, N. C, on October 30.)
817

Disapproval by Japanese Government of Action by Mayor of Dairen in Seeking Contributions for Air Defense

Date and number Subject Page
1934 July 27 (126) To the Ambassador in Japan (tel.)
Instructions to ascertain from the Consul at Dairen the facts concerning a request that foreign firms contribute toward the air defense of Dairen.
818
July 31 (164) From the Ambassador in Japan (tel.)
Information from Consul at Dairen that the request for air defense contributions came from the Mayor of Dairen but without direct or indirect compulsion; suggestion that the matter be brought to the attention of the Foreign Office, inasmuch as the spirit of the treaty of 1911 is infringed if American firms are placed in a position of fearing retaliatory measures for noncompliance.
818
July 31 (130) To the Ambassador in Japan (tel.)
Instructions to confer informally with the Foreign Minister, expressing the hope that the Japanese Government will disavow the action of the Mayor of Dairen.
819
Aug. 23 (186) From the Ambassador in Japan (tel.)
Information from the Vice Minister for Foreign Affairs concerning the Japanese Government’s disapproval of the Mayor’s action, and measures taken by the Governor of Kwantung Province to rectify the situation.
819

Protection of Contract Rights of the Oriental Consolidated Mining Company, an American Firm Operating in Korea

[Page LXXXIII]
Date and number Subject Page
1932 July 25 (40) To the Ambassador in Japan
Instructions to give appropriate attention to the facts in the case of the Oriental Consolidated Mining Co. which involves the question of alleged unlawful action by the Japanese Government by way of indirectly levying a tax on the operations of the company.
820
Sept. 23 (134) From the Ambassador in Japan
Contentions of the company and of the Japanese Government regarding the Japanese embargo on the export of gold; request for instructions concerning formal representations in view of difficulties arising from the Japanese Government’s refusal to permit the company to export gold in a desired quantity in order to meet its obligations in the United States.
820
Nov. 3 (175) To the Ambassador in Japan (tel.)
Authorization discreetly to bring the matter of the Oriental Consolidated Mining Co. to the attention of the Foreign Office and to endeavor to induce the authorities to grant the company’s request.
822
Dec. 23 (235) From the Ambassador in Japan
Résumé of developments resulting in the Finance Department’s refusal to admit the validity of the company’s claim; advice that informal representations will be continued pending the outcome of efforts by the Foreign Minister and the Finance Minister to devise some method whereby the company may dispose of its product without loss.
822
1933 Feb. 10 (38) From the Ambassador in Japan (tel.)
Decision of the company’s counsel, Dr. Kishi, to file an export application with the Governor General of Chosen.
823
May 10 (380) From the Ambassador in Japan
Report of the company’s decision to sell its gold on hand to the Bank of Japan; advice that the case may be considered closed for the time being, but that the company reserves the right to resume the case at some future time.
823
1934 Oct. 2 (992) From the Chargé in Japan
Information concerning a complaint of the Oriental Consolidated Mining Co. with respect to the levying of income tax upon its employees; advice that the Consul at Seoul has been instructed to withhold his proposed reply to the Chief of the Foreign Affairs Section, Japanese Government General of Chosen (text printed) pending a review of the case by the Department.
824
Dec. 3 (645) To the Ambassador in Japan
Approval of the Consul’s proposed reply, with certain changes in phraseology, whereby the company will agree to the payment of the income tax, but not to inspection of its books by the Chosen authorities.
826
[Page LXXXIV]

Representations by the Japanese Government on Behalf of Japanese Steamship Companies Subject to United States War Profits Tax for the Years 1918 and 1919

Date and number Subject Page
1934 Undated From the Japanese Embassy
Statement concerning additional war profits tax for 1918 and 1919 levied by the U. S. Treasury Department on three Japanese steamship companies which were chartered by the United States Shipping Board; Japanese contention that charter fees and Japanese subsidy of these companies are not taxable, and request that the 90-day time limit be extended to allow settlement of the question by negotiations between the two Governments.
(Footnote: Received in the Department July 26.)
827
Aug. 3 To the Secretary of the Treasury
Transmittal of a copy of Japanese statement received July 26 (supra) and expression of the Department’s hope that, in view of the complicated character of the question, the Treasury Department will give favorable consideration to the Japanese request for a careful examination of the arguments in the case.
828
Aug. 16 From the Secretary of the Treasury
Summary information concerning the long-standing tax dispute; assurance that upon the filing of petitions with the U. S. Board of Tax Appeals for a redetermination of the deficiency, the Commission of Internal Revenue will give the Japanese statements serious consideration from the standpoint of a case in litigation before the Board.
829
Aug. 20 (158) From the Japanese Chargé
Memorandum (text printed) setting forth in detail the views of the Japanese Government on the question of taxation imposed by the U. S. Treasury Department upon the three Japanese shipping companies.
830
Aug. 24 From the Ambassador in Japan
Opinion that the Treasury Department should be approached with a view toward reexamination of the assessments made against the shipping companies in order to insure a fair and equitable decision not only for purely technical reasons but also for possible bearings on general U. S.-Japanese relations.
835
Aug. 28 From the Secretary of the Treasury
Résumé of developments of the case and advice that the Department may assure the Japanese representatives of the Treasury Department’s disposition to discuss and settle amicably the tax dispute under consideration.
836
Sept. 17 To the Ambassador in Japan
Advice that State Department officials in conversations with officials of the Treasury Department have emphasized their nonintention of influencing in any way the decisions arrived at by the competent authorities concerning the technical aspects of the case but have stressed the importance of the matter as related to questions of major policy.
837
Nov. 3 Memorandum by the Assistant Chief of the Division of Far Eastern Affairs of a Conversation With the Special Assistant to the Assistant General Counsel, Bureau of Internal Revenue
Indication that careful analysis is being made of the case by the Bureau of Internal Revenue and that a mutually satisfactory adjustment may be reached.
838
[Page LXXXV]

Proposed Reciprocal Arrangement for Free Importation of Articles for Personal Use of Consular Officers; Suggestions for a Consular Convention Between the United States and Japan

Date and number Subject Page
1934 June 4 (532) To the Ambassador in Japan
Instructions to ascertain whether there exists a reciprocal arrangement between the Japanese Government and any other government for duty-free importation of articles for personal use of consular officers; and if so, to propose to the competent Japanese authorities the conclusion of a similar arrangement between the United States and Japan.
839
Oct. 17 (624) To the Ambassador in Japan
Acknowledgment of the Embassy’s report to the effect that no reciprocal consular convention exists between Japan and any other countries, and instructions to propose to the Japanese authorities the conclusion of an arrangement as outlined in instruction No. 532, June 4.
839
Nov. 2 Memorandum by the Assistant Chief of the Division of Far Eastern Affairs
Conversation with the Japanese Ambassador, who stated his Government’s willingness to enter into negotiations looking toward the conclusion of a consular convention with the United States, possibly along the lines of the U. S.-German consular convention.
840
Nov. 15 Memorandum by the Third Secretary of Embassy in Japan
Conversation between officials of the Embassy and the Foreign Office on the subject of a new consular treaty between the United States and Japan.
841
Dec. 28 (1103) From the Ambassador in Japan
Transmittal of two memorandums of conversations between Embassy staff members and Japanese authorities in which it appears that despite the Embassy’s initiation of a proposal for a reciprocal agreement, the Foreign Office desires to shift negotiations to Washington and to submit a draft of a comprehensive consular treaty.
842

SIAM

Proposed Revision of the Treaty of Friendship and Commerce Between the United States and Siam, Signed December 16, 1920

[Page LXXXVI]
Date and number Subject Page
1934 May 22 From the Siamese Legation
Inquiry as to whether the U. S. Government would consent to proceed with the revision of article 3 of the U. S.-Siamese treaty of friendship and commerce of 1920 and postpone consideration of other revisions of the treaty until 1936, when the general revision of treaties with various countries will take place.
844
June 16 (6) To the Minister in Siam (tel.)
Substance of the Siamese Legation’s note of May 22, and advice that every effort is being made by the Department and the Siamese Minister to expedite a decision in the matter.
844
June 21 To the Siamese Legation
U. S. willingness to proceed with the revision of article 3, and presentation of new draft article 3 (text printed) for comments.
845
Aug. 20 (12) From the Minister in Siam (tel.)
Suggestion that the Department suspend treaty negotiations in view of the present uncertain political situation in Siam.
847
Aug. 23 (119) From the Minister in Siam
Supplement to telegram No. 12, August 20, concerning the political situation in Siam.
847