893.151 Manchuria/1

The Acting Secretary of State to the Ambassador in Japan (Grew)

No. 320

Sir: The receipt is acknowledged of your despatch No. 456 of June 30, 1933,4 bringing to the attention of the Department for any action which it might consider appropriate the inquiry made to a member of your staff by the “Manchukuo” Vice Minister for Foreign Affairs with regard to the possible interest of the Foundation Company in the building of the Water Works in Harbin.

You are informed, in strict confidence, that the Department has, after careful consideration, deemed it inadvisable to take any action in this matter. Although the Department does not in the least desire to impede the legitimate activities of American commercial interests in Manchuria or to discourage the Department’s representatives in the field from rendering appropriate assistance to such interests in that area, it is the opinion of the Department that in the case under consideration it would be inappropriate for it to take any action which might be interpreted by officials of the present regime in Manchuria as resulting from the initiative of a representative of that regime and which would be open to the interpretation that the Department is interested in furthering the projects of that regime. Such action would involve political implications which the Department believes it would be advisable to avoid.

Very truly yours,

William Phillips
  1. Not printed.