693.001/408: Telegram

The Consul at Tsingtao (Sokobin) to the Secretary of State

24. 1. The Consulate is transmitting another statement from the American Chamber of Commerce in Tsingtao dealing with American interests and Japanese restrictions. After expressing appreciation for note of October 6 and the note in regard to the opening of the Yangtze, it requests that further representations be made to the Japanese Government in connection with “the restrictions, discriminations and interference” by Japanese authorities.

2. The statement points out that situation in respect to export trade remains unchanged for Americans while Japanese exporters are able to transact business with world markets at prices which necessarily must be based on counter rate of exchange and not on official rate of exchange. The difficulties of Universal Leaf Tobacco Company are also referred to.

3. The next section deals with the continued denial of use of wharves to ships other than those under Japanese registry.

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4. The restrictions on shipment of produce from Tsingtao to other Chinese ports are dealt with. Permission to ship bristles is being refused altogether, while other commodities may be shipped if documents are handled by Japanese banks at official rate of exchange.

5. Attention is then drawn to difficulties of a local dairy in obtaining forage for the milk cows due to interference by Japanese military who require much feed for their horses.

6. In conclusion, the Chamber repeats the suggested American official action referred to in my telegram No. 1 of October 24, 3 p.m., third paragraph, and points out that Japanese firms continue to export staple products while Americans and other parties cannot make shipments.

Sent to Embassy. To Tokyo by mail.

Sokobin