793.94/5061: Telegram

The Acting Secretary of State to the Consul General at Shanghai (Cunningham)

153. For the Minister. Shanghai’s telegram to Department No. 214, April 19, 10 a.m. Department approves the attitude of and the action taken by the Consul General in regard to difficulties experienced by the Robert Dollar Company and by Andersen, Meyer. Department desires that, in addition to action already taken, you take up these cases with the Japanese Minister in a further effort to bring about a prompt and a satisfactory settlement.

With regard to police protection of American property located in Chapei and surrounding Chinese territory, Department desires that all appropriate and practicable assistance and protection be given legitimate American interests located there but is reluctant to have any action taken by representatives of the American Government which may tend to consolidate or strengthen Japanese control in the areas under reference. Department therefore suggests that after consultation with Cunningham you inform the Department of your recommendations on this subject.

With regard to paragraph 2 of Shanghai’s telegram under reference, Department believes that in making representations to Japanese authorities regarding American losses and protection of American property, the rights of such American interests are in no way prejudiced by failure to include a clause similar to that suggested in Shanghai’s 100, February 23, 3 p.m. If, however, you and the Consul General feel that the addition of such a clause would assist in bringing about a settlement, you are granted discretion in the use thereof.

With regard to paragraph 3 of Shanghai’s telegram under reference, Department is of the opinion that the technical question of “recognition” of “Japan’s de facto authority” is not involved. Department desires that whenever legitimate American interests suffer injury the fact of such injury and a request for prompt and effective remedial [Page 724] action be made known to the responsible authorities. The procedure mentioned in the first paragraph of this instruction may be followed whenever appropriate.

Please inform the Consul General and repeat to Legation.

Castle