895.63 Or 4/33
The Ambassador in Japan ( Grew ) to the Secretary of State
[Received May 26.]
Sir: Referring to my telegram No. 32 of January 28, 193321 and to other correspondence in regard to the desire of the Oriental Consolidated Mining Company to export gold from Japan, I have now to report that the Company has decided to sell the gold it has on hand to the Bank of Japan at the price in Yen fixed by the Finance Department.
[Page 824]The President of the Company, Mr. Frederic Bull of New York arrived in Japan in March and left towards the end of April. His arrival here coincided with the imposition of the gold embargo in the United States and for some time the Japanese Government refused to consider any action in regard to gold export or sale pending the resumption of foreign exchange business by the banks in America. After some negotiations with the Japanese authorities, Mr. Bull was instructed by the directors of the Company to sell the gold in Japan and return to the United States. Mr. Bull accordingly made arrangements to turn the gold over to the Bank of Japan.
The Company’s decision, apparently, was influenced by the uncertainty of the exchange situation at the present time, and by the fact that an investigation of the books of the company indicated that the loss in the sale of the gold here would be to a great extent offset by the drop in the value of the Yen in comparison with the dollar. The case may therefore be considered closed for the time being, although the Company reserves the right to bring it up at some future time.
I may add that before his departure from Japan, Mr. Bull expressed to me his feeling that the Embassy had left nothing undone in the interests of the Company and in its efforts, unfortunately unsuccessful, to obtain permission for the export of the gold.
Respectfully yours,
- Not printed.↩