893.113/1402
The Consul at Saigon (Waterman) to the Secretary of State
[Received September 12.]
Sir: I have the honor to refer to despatch No. 459 of April 5, 1932,18 on the subject: “Transit Through French Indo-China of Six Arrow Sport Airplanes Bought by the Government of Yunnan”, and previous [Page 587] and succeeding correspondence concerning the transit of airplanes through French Indo-China for Yunnan. There is enclosed a copy of a letter dated July 26, 1932, from the American Vice Consul at Yunnanfu, enclosing a copy of a letter dated July 26, 1932, (this date appears to be in error) from the American Trade Commissioner at Hongkong, and a copy of a letter dated August 8, 1932, sent by this Consulate to the American Trade Commissioner at Hongkong in reply.19 In this letter the Trade Commissioner states that as the South China aircraft sales organization shortly to be organized by Wallace Harper, Jr., at Hongkong contemplates selling airplanes to the Yunnanese Government he would appreciate knowing whether they would be granted a transit permit through French Indo-China.
In view of the difficulties which arose with the shipment of airplanes discussed in despatch No. 459 above, and in view of the probability that further difficulties will arise should another shipment be attempted, I rather hesitate to endeavor to obtain a definite decision from the local Government as to its future policy in the present hypothetical status of the inquiry. It is possible that the local Government, not having a concrete case to decide, might refuse definitely, thus making possible future requests more difficult.
Again, in view of the determined efforts made by the French to sell French airplanes to the Yunnanese Government, even after the sale of the Arrow planes had been consummated, it is quite probable should the French receive an indication that further sales of American airplanes were to be made, they would put forth every effort to sell their own planes. It is furthermore probable that they would not hesitate even to resort to threats or other pressure upon the Yunnanese Government to force them to buy French planes, thus seriously prejudicing the possibility of effecting American sales. It would therefore appear advisable for American firms desirous of selling planes to the Yunnanese Government to endeavor to obtain a fixed sales contract containing a provision that the contract would be valid only in the event permission could be obtained for transit through French Indo-China. This procedure would place the Consulate in a very good position to make a definite demand for transit permission, and the planes need not be shipped from America unless, or until, this permission has been received.
On the other hand, the Department is referred to the two cases recently handled by this office concerning transit through French Indo-China, both of which have been successful from the American standpoint. I refer to the airplane case and to the case of the asparagus which did not have the country of origin stamped in French on [Page 588] each tin according to French law. (See despatch No. 269 dated October 22, 1930,20 on the subject: “Result of Protest Against Confiscation of Asparagus Consigned to American Citizens in Yunnan”). From these successful conclusions, obtained through energetic action, it appears to me that possibly the local Government believes itself in a rather untenable position in maintaining its arbitrary regulations. If this is true, it might be advisable to endeavor to obtain a definite commitment as to its future policy from the local Government on the whole transit question, through raising the question asked by the American Trade Commissioner at Hongkong.
It would be of the greatest assistance to this office in future cases of this kind, if the Department would instruct it as to its complete policy with regard to the transit question, as well as forward a brief outline of any previous correspondence with the French Government on this subject.
I would request that the Department send this Consulate a telegraphic instruction in reply to this despatch, indicating in particular whether it desires to reopen the whole transit question on the grounds advanced by Mr. Barringer in his letter to the Consul at Yunnanfu.
Respectfully yours,