893.74/529: Telegram
The Minister in China (Schurman) to the Secretary of State
[Received March 23—12:30 p.m.]
123. Your 34, March 5, 2 p.m.12 Federal Company’s representatives now inform me that after one month’s negotiations with the Ministry of Communications they have made no progress toward execution of contract. They believe the Ministry of Communications favorable and ascribe deadlock to Japanese influence in the Ministry of Foreign Affairs and with the Chief Executive. At their request I called on the Minister for Foreign Affairs on March 23, 11 a.m., and presented strong demand for execution of the Federal contract [Page 902] so far as possible before my departure. I quoted treaties and open-door principle as canceling Japanese monopolistic clause which appeared to be only obstacle. The Minister for Foreign Affairs replied that Japanese opposition was cause of obstruction and that if this were obviated American contract would be executed. He promised to consult the Minister of Communications. While Japanese influence is extremely strong with the present Government there are signs latter is growing weaker and I feel that receipt in the Ministry of Foreign Affairs of strong representation from the American Government telegraphed by the Chinese Minister in Washington might have great effect at this juncture. I respectfully suggest this course.
Repeated to Tokyo.
- Not printed.↩