Office of the Historian

811.5034 (China) Thrift Corp./34: Telegram

The Secretary of State to the Ambassador in China (Johnson)

Washington, October 7, 1935—6 p.m.

15. Your 28, October 5, 1 p.m.9 and 29, October 6, 3 p.m. The Department is doubtful whether American authorities in China could properly refuse to recognize the jurisdictional status of the bank as an American citizen if that question were submitted for judicial determination. However, the question is primarily one for consideration by the Court and if the Judge of the United States Court for China is prepared to maintain in any possible judicial proceeding the position reported in the final paragraph of your telegram 29, August [October] 6, 3 p.m., the Department would not object to your suggested instruction to Harbin.

The Department realizes the desirability of avoiding participation by American authorities in the bank liquidation, if that course may properly be taken, but, if the Court should ultimately be required to assume jurisdiction, it would seem preferable that jurisdiction be taken immediately and that all possible measures be adopted to effect the quickest and most equitable adjustment of the bank’s affairs.

The Department is making inquiry of the Governor of Nevada in regard to the validity of the company’s charter and will inform you of his reply.

Hull
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