793.94/5053
The Consul General at Mukden (Myers) to the Minister in China (Johnson)35
Sir: I have the honor to report a few incidents which throw some sidelight on Japanese methods in Manchuria as well as show the lengths to which the Japanese will go in the furtherance of their schemes.
In the local branch of one of China’s leading banks, some of the [Page 644] prominent officials of the former government had personal funds on deposit on September 18, 1931, since when these funds have been impounded by the Japanese in control. There is also on deposit in this bank $2,500,000 belonging to the Peiping-Liaoning Railway. Recently the Japanese military demanded that these deposits be handed over, the spokesman being a lieutenant. The demand was refused and subsequently a higher officer appeared at the bank to offer an apology for the mistake that had been made. It is thought that the plan had been concocted in hope of securing the money by overawing the manager and that when it miscarried the apology was offered. It is understood that the Japanese have given the bank permission to pay these personal funds to the individuals themselves upon their personal application or upon the application of their qualified representatives. They cannot, however, be transferred to other branches of the bank. This appears to be a clever move to induce some of these officials to return to Mukden, the Japanese desiring, no doubt, to induce them to accept positions in the new Government. In this connection it may be stated the Hsing Shih-lien, who was closely associated with Marshal Chang Hsueh-liang, is mentioned as the future Chief of Police at Changchun and that Kao Chi-yi, former director of the Peking-Liaoning Railway, and several others are ready to return.
Another interesting report has been heard that the private funds of Chang Hsueh-liang in the Bank of Chosen and Yokohama Specie Bank amounting to about Yen 15,000,000 have for the most part disappeared. These deposits were subject to withdrawal by checks bearing the personal chop of Chang Hsueh-liang which had been in the possession of Lu Mu-t’ing, the former director of the Bank of the Three Eastern Provinces. Wu En-p’ei, the present director of the bank, is in possession of this chop and according to my information has drawn large checks on these deposits. Colonel Doihara, who was recently promoted, received Yen 5,000,000 for the Tientsin affair, during which Henry P’u Yi was spirited away on a Japanese destroyer to Newchwang. Mr. Wu, it may be added, is a close personal friend of Mr. Sudo, the Japanese adviser and actual director of the Three Eastern Provinces Bank. A large cancelled check drawn on these deposits has been seen by the informant. The above two reports have emanated from a reliable source and are believed to be reliable.
Some weeks ago a member of the Chinese staff of the local Post Office was arrested and detained by Japanese gendarmes for six hours for having written a letter in which responsibility for recent developments in Manchuria was attributed to the Japanese. While under detention he was forced to sign a statement to the effect that he would never criticize the Japanese again. Recently he was re-arrested because a [Page 645] report of his former arrest appeared in a Chinese newspaper in Tientsin for which he was not responsible. This second detention lasted twenty-four hours, during which he was closely examined and subjected to torture. He was badly beaten on the body, slapped on the face many times and threatened with being shot. He was forced to give the names of all persons in the local Chinese Post Office who are anti-Japanese and to sign a document promising that he would not divulge what had occurred during his detention. This man who is quiet and unassuming has had a serious nervous shock as a result of this brutal treatment.
About ten days ago, several experts of the International Money Order and Union Departments, Tokyo, arrived in Mukden for the purpose of investigating postal conditions with a view, it is believed in responsible quarters, of making recommendations concerning the taking over by the Japanese Postal Administration of the Chinese post offices in Manchuria. A higher Japanese postal official, a Mr. Shimizu, arrived yesterday, in connection with the same question. It has been heard that Japanese Headquarters is urging the immediate taking over of the Chinese post offices while the investigators have advised delay and that Mr. Shimizu has been sent here to submit his views on this question. According to available information, the local Government so far has taken no part in this movement for taking over the Chinese post offices.
Yours respectfully,
- Copy transmitted to the Department by the Consul General at Mukden in his despatch of March 29, 1932; received April 16.↩