File No. 893.773/39.
Ambassador Guthrie to
the Secretary of State.
No. 242.]
American Embassy,
Tokyo,
March 29, 1915.
Sir: My despatch No. 234 of the 8th instant
transmitted as enclosure a copy of a representation made by the Embassy
to the Foreign Office on the subject of apparent discrimination in
freight rates on the South Manchuria Railway against shipments from
Shanghai.
[Page 616]
I have the honor
herewith to transmit a copy of a note from the Foreign Office received
in reply.
In a recent conversation with the Minister for Foreign Affairs he told me
that the above-named company had desired to promote the commerce of
Dairen and to favor it even at the expense of Newchwang, for the reason
that at the latter place part of the trade to Mukden and beyond went by
the Chinese railway, whereas by Dairen the whole went by the South
Manchuria road. He said that as the matter had been explained to him the
regulations did not discriminate between the trades of different
countries at all, American trade being able to take advantage of the
regulations just as Japanese trade had. I pointed out that while this
was theoretically true, practically it was not correct; that American
trade all went by way of Newchwang, where it was very much discriminated
against by this regulation; that while theoretically goods going from
Shanghai by way of Newchwang could get the benefit of the discount on
through rates provided they were billed through, the only steamship line
which could issue the through bills was composed of the South Manchuria
Company’s own ships. Baron Kata admitted that this point should be
corrected and arrangements made to permit other lines to send goods
through.
As to the regulation providing that only through goods could be entitled
to the discount, he seemed convinced that American trade had no just
cause of complaint thereat. He said that as a matter of fact Japanese
merchants at Dairen had complained bitterly of the same thing, alleging
that insistence upon this point must drive them out of the trade. In
spite of this, however, the company had adhered positively to the
regulation.
It will be noted by the communication from the Foreign Office that the
railway company expresses its willingness to form a connection for joint
transportation with any foreign steamship company so desiring, and to
allow to such foreign company the same reduced rates on through goods
which are now given to through goods carried by the railway company’s
own steamers, and that this regulation applies both at Newchwang and
Dairen.
I have [etc.]
[Inclosure—Translation.]
Baron Kato to Ambassador
Guthrie.
No. 98.]
Foreign Office,
Tokio,
March 19, 1915.
Monsieur l’Ambassadeur: I have the honor
to acknowledge the receipt of your excellency’s note under date the
6th instant, relative to the reduced freight rates on the South
Manchuria Railway.
I beg to state that having referred the matter to the authorities
concerned, I am now in receipt of a reply therefrom to the following
effect:
The special reduced rates at present in force are allowed to
certain goods which are sent direct through Dairen,
Newchwang, or Antung to Mukden or specified points north of
that city; and it is intended that the same treatment shall
be accorded whether the port of export and place of origin
of the goods in question and the nationality of the vessels
carrying them be Japanese or foreign. If, however, the said
goods are, instead of being sent direct, first landed at
Newchwang, Dairen, or Antung, and then forwarded to Mukden
or specified points north of that city, such goods are, even
if they are Japanese, charged somewhat higher rates then
those allowed to the above-mentioned through goods. On this
point also, no special protection is given to Japanese goods
against foreign, and
[Page 617]
they are all treated, whether Japanese or foreign, in the
same manner with absolute impartiality. It may be added that
for effecting the through transportation above referred to,
it is necessary that a connection for joint transportation
should be first established between the steamship company
and the South Manchuria Railway Company, and at present the
steamship companies having such connection with the Railway
Company are the Osaka Shosen Kaisha and the Nipon Yusen
Kaisha. But if any foreign steamship company desires to form
such connection for joint transportation, the Railway
Company is willing to comply and will certainly allow the
above-mentioned reduced rates to the through goods carried
by the steamers belonging to such company. Indeed, the
Railway Company lately received from the American Consul at
Dairen a letter inquiring whether it was willing to make an
arrangement for joint transportation identical with that in
force with the two Japanese steamship companies above named
with ah American steamship company for the transportation of
through goods from San Francisco; and it is the intention of
the South Manchuria Railway Company to comply at any time
with the request and make an arrangement for allowing to
American goods the same reduction in rates as in the case of
Japanese goods.
I avail [etc.]
