600.939/195: Telegram

The Secretary of State to the First Secretary of Embassy in China ( Salisbury ), at Peiping

176. If you have not already done so please repeat urgently to Tokyo Tientsin’s 113, June 29, 3 p.m., and 114, July 1, 6 p.m.,37 and transmit the following instruction to Tokyo as from the Department as 229, July 2, 7 p.m.:

“Tientsin’s 113, June 29, 3 p.m., and 114, July 1, 6 p.m., in regard to embargo upon exportation of hides and skins.

The Department desires that you approach the Japanese Foreign Office, in such manner as you consider will be most effective, and, recalling the position taken in our 31, January 30, 1 p.m.,38 with special reference to the statements in regard to the arbitrary and illegal assumption of authority by the provisional régime in Peiping and to the Japanese Government’s responsibility for the acts of the provisional régime, point out that the export prohibition placed on domestic animal hides and skins is definitely inimical to American interests in a number of ways, such as: [Page 24]

(1)
American firms in China engaged in purchasing and exporting hides and skins will suffer heavy loss;
(2)
American consumers, who take the bulk of Chinese exports of domestic animal hides and skins, will be seriously embarrassed by the loss of China as a source of supply; and
(3)
inasmuch as the provisional régime in Peiping has established and is maintaining an inconvertible currency, foreign exchange for the purchase of American products is available only as it accrues from export operations to this country or other non-Japanese countries and, under the circumstances, American imports into north China may be curtailed roughly to the same extent that exports to this country are curtailed.

The Department desires that, on the basis of the statements in the foregoing paragraph and in the light of the information contained in Tientsin’s two telegrams under reference, you request that the Japanese Government take steps to cause the removal of the unwarranted restriction placed upon American trade with north China.

You may also consider it useful to bring the situation under reference to the attention of the Foreign Minister in your conversation on July 4.”

Please repeat to Hankow and Tientsin.

Hull
  1. Neither printed.
  2. Vol. iii, p. 638.