693.119/379: Telegram
The Minister in China (Crane) to the Acting Secretary of State
[Received December 14—11:23 a.m.]
432. My 424, December 4, 10 a.m.4 British Legation informs me that Japanese Foreign Office has sent note [to] British Ambassador outlining alleged violations of arms embargo [for] China by Great Britain, United States and Italy, stating that these Governments thus appear to be incapable [of] imposing effective restrictions on arms shipments whereby Japanese merchants are placed at great disadvantage and proposing that powers should agree [to] delivery to Chinese consignees of all arms ordered but not delivered before imposition embargo. Accusation against British centers around aeroplanes. British claim delivery was made on commercial basis and that only violation was one flight made during fighting last summer by mechanic against orders [of] British instructor; for this, was dismissed. Legation still having great difficulties with planes and have even refused permit flights to Urga. Present accusations against Italians refer presumably [to] earlier deliveries reported by me and also offered sale of gunboats on Yangtze River. British claim have proof sale of boats to Chekiang authorities never effectuated. Claim Americans [involved in] sale $1,000,000 worth arms and ammunition without specifying details. If this refers to Andersen, Meyer shipment, latter still undelivered [in] godown, Taku. It may possibly refer to latest Canton matter. British Legation very keen to prepare full refutation of warrant for opening arms traffic on grounds given by Japanese. Legation contends, and I heartily concur, that it would be [destructive] at this moment to permit removal of embargo, for so much is virtually what the Japanese propose. The reasons for its enforcement are stronger now than ever. I earnestly recommend the renewal of war powers to permit continuance of our adhesion to the embargo. In this connection British Legation propose [to] prosecute Davis Company, said to be American owned corporation registered at Hong Kong, to which portion [of] Woudrichem cargo was transferred on the high seas from original consignees, see my telegram 424, December 4, 10 a.m.4
… One American pilot was drowned; two others are returning to the United States by the first steamship from Canton.
British Legation claims that they have double check on deliveries, one at the source, and one here, and that we virtually have only one, [Page 754] that at the source. British Legation states that British Ambassador, Rome, now instructed to join in protest to the Italian Government.