File No. 893.773/42.
Chargé Wheeler to the
Secretary of State.
No. 296.]
American Embassy,
Tokyo,
June 9, 1915.
Sir: Since the writing of the Department’s
instruction No. 140 of April 17 last, on the subject of apparent
discrimination in the freight rates on the South Manchuria Railway, the
Embassy’s Nos. 242 and 253 of March 29 and April 6, respectively, have
informed the Department of later developments in the question.
[Page 619]
On receipt of the Department’s telegram of April 17, I at once took up
the matter with the Foreign Office, on the basis of Baron Kato’s note
No. 98 of March 19 (enclosed in our dispatch No. 242, above mentioned),
stating that I was confident that the continuance of the old conditions
at Dairen was clue only to the failure of the local authorities to
receive instructions from the central office, and that I hoped the
sending of these instructions need not be long delayed. The vice
minister for Foreign Affairs promised to telegraph at once to Dairen and
to ascertain where the trouble lay.
On May 5 the Consul at Dairen telegraphed me that the railway authorities
informed him that a draft of agreement was being prepared there which
would be submitted to the Imperial Government for their approval. On my
next call at the Foreign Office I inquired regarding this draft,
expressing some surprise that it should be thought to be necessary,
since all that was desired in the case of shipments by American vessels
was that rates and agreements be applied to them which were already
operative as regards shipments in Japanese vessels. The reply was made
that the local authorities at the port involved, knowing how to deal
with Japanese companies, had not in the past gone very deeply into the
question, but that now that arrangements were to be made with foreign
companies, they felt the need of giving the matter more careful study
and employing a more regular form of contract.
I have the honor to enclose herewith copies of more recent correspondence
between myself and the Vice Minister for Foreign Affairs on the subject.
The Embassy is not as yet in receipt of a copy of the “draft contract”
said to be in preparation.
The Department’s instruction No. 140, above referred to, states that “no
line of Japanese steamers appears to be engaged in carrying goods to
that port” (Newchwang). According to the report of the Commissioner of
Customs for the year 1913 (the latest report on file at this Embassy),
clearances and entries of Japanese steamers at Newchwang totaled 298, as
against 177 British and 114 Chinese vessels. What proportion of these
ply between Newchwang and Shanghai, these statistics do not show; I am
informed, however, by the Nippon Yusen Kaisha that this company
maintains a regular service on that route.
I have [etc.]
[Inclosure 1.]
The Vice Minister for Foreign
Affairs to Chargé Wheeler.
Foreign Office,
Tokio,
May 18, 1915.
Dear Mr. Wheeler: In reference to our
conversation the other day respecting the conclusion of a contract
for transportation connection between the South Manchuria Railway
Company and the American Steamship Company, we made inquiry at once
through the Railway Board with regard to the progress of the
negotiations at Dairen; and received from the Board a telegraphic
reply of the Railway Company, stating that as it was necessary first
to make investigations concerning the conditions of the proposed
contract and the manner of carrying them out, these investigations
were being made with great expedition. The Board was next desired to
urge the Railway Company to accede to the proposal of your Consul at
Dairen and bring the negotiations to a satisfactory
[Page 620]
conclusion as soon as possible; and
accordingly the Board instructed the Company by telegraph on the 6th
instant to frame the draft contract at an early date and open
negotiations with your Consul. The Company has sent a reply to the
Board, expressing its compliance with these instructions.
[Inclosure 2.]
Chargé Wheeler to
the Vice Minister for Foreign
Affairs.
American Embassy,
Tokyo,
May 20, 1915.
Dear Mr. Matsui: I beg to thank you most
sincerely for your note of the 18th instant, respecting the matter
of transportation connection between the South Manchuria Railway
Company and American vessels.
It is my understanding—from the declaration of the South Manchuria
Railway Company as quoted in his excellency Baron Kato’s note, No,
98 of March 19 last, to the Ambassador—that the reductions in rates
and the treatment provided in the draft contract now in preparation
for application to American vessels at Dairen, will be the same as
in the case of Japanese vessels; and that it is the intention of the
Railway Company to make with American vessels at Newchwang and
Antung similar agreements which shall grant the same reductions as
in the case of Japanese vessels.
Inasmuch as your note does not describe the nature of the draft
contract referred to, may I ask you to be so kind as to confirm my
understanding of these points?
[Inclosure 3.]
The Vice Minister for Foreign
Affairs to Chargé Wheeler.
Foreign Office,
Tokio,
June 8, 1915.
Dear Mr. Wheeler: I beg to acknowledge the
receipt of your note of the 20th ultimo, relative to the
transportation connection between the South Manchuria Railway and
the American steamship company. Having at once referred the matter
to the Railway Board, I am now in receipt of a reply to the
following effect:
The freight rates to be charged upon formation of the direct
transportation connection between the American steamers and
the South Manchuria Railway at Dairen, Newchwang, and Antung
will not, as a matter of course, differ from those
chargeable in case of a similar connection with Japanese
steamers; and in regard to the handling of cargoes and other
matters, the treatment accorded in the case of a connection
with Japanese vessels will be generally followed. As,
however, the two companies intend to enter into a voluntary
contract after consulting their mutual convenience, the
Board is unable, pending the presentation of the draft
contract for its approval by the Railway Company, to give a
definite answer with respect to matters of detail.
Yours very sincerely,