File No. 611.9331/41

Minister Reinsch to the Secretary of State

No. 1387

Sir: Referring to previous correspondence on the subject of the Chinese Government’s discrimination against American interests in the matter of the export of flour, and particularly to my telegram of January 16, 6 p.m., and to the Department’s reply of January 22, [19], 4 p.m., I have the honor to enclose herewith for your information a copy of the note (No. 559) which I addressed to the Foreign Office on this subject under date of the 25th ultimo.

I have [etc.]

Paul S. Reinsch
[Inclosure]

Minister Reinsch to the Minister for Foreign Affairs

No. 559

Excellency: I have the honor to acknowledge the receipt of your note of January 10 in regard to the export of flour.

In reply I have the honor to state that it is difficult for me to understand how a responsible department of the Government, such as the Revenue Council, can make use of the arguments advanced in this note. I have already stated repeatedly in my communications to your Ministry that the explanation of the shipment [Page 284] of flour as a relief measure is a mere pretext to cover ordinary commercial transactions. I say this because the flour thus exported is sold on the markets of Hongkong, Singapore, etc., to anyone who will buy it. I am informed that upon the Hongkong market alone 350,000 barrels of Chinese flour were sold during the year of 1916.

The idea that reliable Chinese merchants will be permitted to export flour while other Chinese merchants and foreigners are excluded is so novel that I believe you will agree with me that any international court would consider it an insult to its intelligence were such an argument advanced before it.

As always, I have endeavored to show to your Government the utmost patience and consideration in this matter. That patience, however, is necessarily exhausted when such arguments as those discussed above are advanced. I am therefore under the painful necessity of informing you that I shall instruct American merchants desirous of exporting grain or flour from China to offer for exportation such quantities of either as they may desire to ship. Should permission to export be refused these American merchants while export is permitted under any excuse, whatsoever, to Chinese merchants or other foreigners, the American Government will hold the Chinese Government responsible for any damage suffered by the said merchants through the failure to grant permission to export.

I avail [etc.]

Paul S. Reinsch