893.01 Manchuria/983
The Consul General at Mukden (Myers) to the Minister in China (Johnson)14
Sir: As of possible interest, I have the honor to report upon local foreign opinion regarding recognition of “Manchukuo” by the Powers and upon certain related matters. It may be explained that I discussed this subject confidentially with several of my Colleagues whose views are given below.
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In view of the history of the Manchurian “incident” and in the apparent absence of any substantial advantages to be gained by American interests from early recognition, it is my opinion that recognition should be deferred until a more appropriate time. Thanks entirely to the Japanese, the new state has been established and an effective government organized which functions throughout the limits of its territory. Unless terminated or altered in form by its protector and guardian there is every prospect of its not being short lived. Although not having a direct bearing on the matter, it may be mentioned that China cannot be expected formally to recognize the new state in the near future but that tacit recognition of its de facto status may not be far off. Negotiations pertaining to border questions, the establishment of postal relations, and possibly more important matters have been taking place, it is understood, and within a comparatively short period it is to be expected that an agreement on some of these questions will be reached. It has been learned also that the salt and samshu merchants at Yingkow (Newchwang) recently secured the abolition of Chinese restrictions on these products and that they are now being shipped to the Yangtze Valley from that port. Another indication that the Chinese are characteristically reappraising political values according to actualities is that the postal savings accounts of the former Chinese post offices in Manchuria are now being quietly paid at Tientsin through the Bank of China. In my opinion the conclusion of an agreement for the regulation of border problems, implying, as it will, tacit acceptance by China of the altered status of Manchuria will be an appropriate time for seriously considering formal recognition in association with other leading Powers. I would add that my French Colleague holds similar views on this question.
Pending the granting of formal recognition, it seems appropriate [Page 486] at this time to recommend for consideration that consular officers in Manchuria be authorized to have informal relations with the de facto authorities at Hsinking. As was reported in my confidential despatch No. 837, of September 20, 1933,16 under the subject “Looting Claims”, the German Consul has on a number of occasions had such relations with the Hsinking officials and it would seem from the above that the British intend to initiate regular consular relations in the near future. As is well known, authority in the new government is highly centralized and consequently consular officers who are limited to making representations to local officials only will be greatly handicapped. Judging from the experience of my German Colleague informal relations will not only facilitate the handling of consular protection work but may prove beneficial to the American interests concerned. There are several pending cases in this office, it may be added, the handling of which would no doubt be greatly facilitated and their satisfactory adjustment probably obtained were it possible to take them up informally with the appropriate authority at Hsinking.
It is my impression that local foreign business men are, generally speaking, apathetic toward the question of recognition. They realize apparently that no substantial business advantage is to be gained therefrom and therefore are uninterested. The only definite opinion in favor of recognition which has been expressed by prominent foreign business men to my knowledge emanated from The National City Bank although it is believed that a few others hold similar views. The local manager of the Socony-Vacuum Corporation stated in confidence to me—he expressed the opinion that the other oil companies hold similar views—that he does not favor recognition at present and believes that a waiting policy will prove advantageous both in respect of Manchuria and of China where haste might lead to a boycott of American products. He is however, strongly in favor of direct relations between local consular representatives and the de facto authorities at Hsinking because their need is greatly felt.
Brief reference may be made to the views expressed by Mr. John L. Curtis, Manager of the National City Bank for Japan and Manchuria, in favor of early recognition of “Manchukuo” which were referred to in the Embassy’s political review for September 1933 (dated October 3, 1933).16 During his visit to Mukden he called at this office and in the course of the conversation he brought up the matter of recognition and its possible effects on American interests in Manchuria. I remarked that in my opinion it would be premature [Page 487] to recognize “Manchukuo” at this time but that to all appearances “Manchukuo” in some form of close relationship with Japan seemed to have come to stay. Regarding the possible influence of American recognition on the trend of events, I pointed to Korea as an example of the ineffectiveness of recognition and expressed the view that it could not be expected to have any material effect on American trade.
In this general connection, it may be stated that according to a recent announcement regarding the proposed mining law, the granting of mining rights will be restricted to natives and subjects or citizens of treaty Powers. The most recent announcement is to the effect that this law will not be promulgated before the spring of 1934. It may also be mentioned that reports, believed to be reliable, have been heard from time to time that the Japanese military authorities are actually not anxious that foreign Powers recognize “Manchukuo” before their plans for the new state have been completed. Although it has not been possible to confirm these reports, it seems quite likely that they represent the attitude of a large part of the military who are dictating the policies of the new government. On the other hand, it is believed that the civilian element in the “Manchukuo” Government would welcome recognition at an early date.
Respectfully yours,