895.63 Or 4/23
The Ambassador in Japan (Grew) to the Secretary of State
[Received January 16, 1933.]
Sir: I wish to refer to my telegram No. 266 of November 10, last,19 in regard to representations which I made to the Minister for Foreign Affairs on behalf of the Oriental Consolidated Mining Company, and to report that the British Ambassador informs me that he has also spoken to Count Uchida20 in this connection. In the meantime, the Company’s lawyer, Dr. Kishi, has been in contact with the Finance Department of the Japanese Government, and has submitted a number of briefs outlining the Company’s position. Yesterday the General Manager of the Company called at the Embassy and left a translation of the reply to Dr. Kishi’s representations, dated December 19, 1932. A copy of this translation is enclosed.19
[Page 823]The reply amounts to a refusal to admit the validity of the Company’s claim. In informal discussion at the Foreign Office yesterday, a member of my staff was informed that there was no possibility that the Government would admit that the Company had unconditional rights in the matter of gold export; that this right was not expressly stated in the concession; that if such export were permitted the Government would surely be asked about it in the Diet, and the whole matter would, or might, become a political question. On the other hand, it was stated, the Foreign Minister and the Finance Minister were looking for some method whereby the Company could dispose of its product without loss.
For the moment, the situation appears to be at a deadlock. I shall, however, continue informal representations in the case.
Respectfully yours,