File No. 893.773/37.
Ambassador Guthrie to
the Secretary of State.
No. 234.]
American Embassy,
Tokyo,
March 8, 1915.
Sir: With reference to my despatch to the
Department No. 184 of January 6 last, I have the honor to state that
since the date of that despatch the British Ambassador has informed me
that in view of all the circumstances, and considering the smallness of
British interests involved, he does not feel disposed to join in any
representation to the Imperial Government on the subject.
I have found through correspondence with the Consuls at Newchwang and
Dairen and by communication from the British Consul at the latter place
(copies of which have been given me by Sir [Page 614] Conyngham), that a discount of thirty per cent on
the specific rates is now allowed on cotton goods shipped by Japanese
lines from Shanghai to Newchwang and consigned to points north of
Mukden. I have also learned that the railway authorities assert that a
similar discount will be allowed on such shipments by British lines
making suitable arrangements with the railway company. I can not find,
however, that any British line has entered into such an agreement.
As the matter stands at present, it will be seen that American cotton
goods shipped from Shanghai in Japanese bottoms and consigned to points
north of Mukden via Newchwang, are allowed the thirty per cent discount
on the specific rates; but such discount is not allowed on goods shipped
by other lines or on goods consigned to Newchwang and subsequently
reshipped from that place to points north of Mukden. It is only on these
two points, therefore, that claim of discrimination was made by me.
While the former Consul at Newchwang was of the opinion that an effort
should be made to induce the railway company to grant a similar discount
of thirty per cent on goods shipped from Newchwang to points south of
Mukden, I do not understand the instructions of the Department to
authorize me to raise this question, as no discrimination is involved in
it.
In view of the decision of the British Ambassador not to join in any
protest to the Imperial Government, I have filed a representation on
behalf of American trade, a copy of which is enclosed herewith. I have
taken this action at the present time for the reason that the
established rates now enforced, expired on the 31st of this month, and
it appears from the newspapers that a conference is now going on in
Tokyo between the boards of the Government Railways, the Chosen Railway,
and the South Manchuria Railway, at which the fixing of the rates for
the next year is under consideration.
I am just informed that there are no American merchants now carrying on
business at Newchwang, all of them having withdrawn some time ago except
one who has since died.
I have [etc.]
[Inclosure.]
Ambassador Guthrie to Baron
Kato.
No. 104.]
American Embassy,
Tokyo,
March 6, 1915.
Your Excellency: Pursuant to instruction
from my Government, I have the honor to call the attention of the
Imperial Government to an alleged discrimination in freight rates
charged by the South Manchuria Railway Company on cotton goods of
American manufacture, shipped from Shanghai to consignees at
Newchwang, and from there forwarded to purchasers at various points
in Manchuria north of Mukden.
It is stated that a discount of thirty per cent on established rates
is allowed on Japanese cotton goods shipped through from Japanese
ports, while the full established rates are required on American
cotton goods shipped from Shanghai, unless carried in Japanese
bottoms and consigned directly to points in Manchuria north of
Mukden. I am informed that notice has been given at Newchwang that a
similar privilege will be extended to such British lines from
Shanghai as entered into the same arrangements with the South
Manchuria Railway Company as do the Japanese lines; I am not aware,
however, that such [Page 615]
arrangements have yet been made by any British line, nor, so far as
I have been able to learn, have the specific terms been announced on
which arrangements could be made. At present, therefore, cotton
goods shipped from Shanghai via Newchwang, can secure the discount
allowed on such goods from Japanese ports, only when shipped in
Japanese bottoms and when consigned directly through from Shanghai
to points north of Mukden.
The established course of trade in American cotton goods intended for
points in Manchuria has been to ship them to Shanghai, from which
point they are consigned to Newchwang, where the consignees reship
them to the purchasers at various points in the interior. Under the
regulations complained of, goods so shipped are not allowed the
discount of thirty per cent on established rates granted to cotton
goods from Japan; and even if consigned from Shanghai direct through
interior points without the intermediate delivery to consignees in
Newchwang, the discount it at present allowed only when these goods
are shipped in Japanese bottoms.
American shippers assert, and their claim seems not without
justification, that owing to the character of the trade and the
manner in which the goods are handled at Newchwang, it is
practically impossible for them to change the mode of shipment and
instead of consigning their goods in the first place to Newchwang,
to consign them direct to the purchasers at the final points of
destination in the interior. It is asserted too, that to require
them to do this as a condition on which the rebate on railway
freights would be allowed, can be of no benefit or advantage to the
railway company. The goods under any circumstances must be
transshipped at Newchwang, where the presence of a consignee to
receive and care for them relieves both the shipowners and the
railway company of labor and responsibility in handling them.
It would seem, therefore, that no reason exists which would justify
any greater charge by the South Manchuria Railway Company for the
transportation to interior points of goods consigned from Shanghai
to Newchwang in this way than for goods shipped from Japanese ports
through Newchwang and directly consigned to the same interior
points. And it seems at the same time apparent that such greater
charge cannot but impose upon the trade a heavy burden which is
incompatible with the principle of equal opportunity.
I have been instructed to bring this matter to your excellency’s
attention, pointing out that the regulations to which exception is
made appear to discriminate against American trade, and to this
extent to be inconsistent with the policy of the open door—a policy
which has so long been mutually upheld by our two Governments, and
Japan’s adherence to which was again stated in the address of the
Premier on the 27th of last month, in his excellency’s declaration
that “our Government does not help our merchants to contend with
foreign merchants in China.”
In view of the clear understanding in regard to this wise and
beneficent policy which has so long been followed by both Japan and
the United States, the Department of State has full confidence that
the regulations pointed out in the above were adopted by the local
authorities without a full appreciation of their effect upon
American trade. I therefore have no hesitancy in calling your
excellency’s attention to the dissatisfaction thus caused, in the
hope that the situation will be carefully considered, and that if
the facts be found to militate against that principle of equal
opportunity under which the trade of our two countries has up to
this time developed, an adequate solution will be found by the
Imperial Government.
I avail [etc.]
