811B.011/16: Telegram

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

68. Department’s 42, March 15, 8 p.m.79 Aside from the mining law there is no specific legislation restricting the exploitation of natural resources by foreigners. The benefits of subsidies are restricted by law in each case to Japanese subjects. There are a number of administrative policies which in practice would probably prevent foreign exploitation of resources. In the case of water power rights an application by a foreigner to dam streams and build power plants would probably be rejected, although there is no law which forbids foreigners to go into the business. A number of foreigners have been interested in these enterprises as investors, but the authorities would very likely insist that the concession be issued in the name of a Japanese. The same applies to commercial fishing, which requires a license. It is extremely improbable that an application by foreign interests would be considered favorably, despite the absence of legislation on the subject.

Agriculture is not restricted to Japanese. There are a number of foreigners, mostly mission or missionary institutions, who conduct farming enterprises without interference. There is no legislation, regulation or restrictive policy in vogue in this matter. It would probably be impossible to import labor to operate an agricultural establishment, although there is no specific legislation on the subject. Immigration is controlled not by law but by administrative ruling of the Home Department, by which the police keep out persons whose presence is considered undesirable. As habeas corpus proceedings are unknown in Japan there is no way to interfere with administrative rulings in this connection.

Grew
  1. Not printed.