693.11241 Manchuria/6
The Consul General at Mukden (Ballantine) to the Minister in China (Johnson)1
Sir: I have the honor to refer to the Legation’s telegram of June 12, 2 p.m., 1935, in regard to the payment of duty upon official supplies for this office, and to inform the Legation that I discussed the matter on June 18 with Mr. Ohashi, the Vice Minister for Foreign Affairs.
He told me that the British Consul General had made a protest on the day previous in regard to the imposition of duty on official supplies for his office and he had said in reply that the action had been taken by the Finance Department and that the Foreign Office had had no basis on which to take exception to its decision, since consuls of non-recognizing powers had no status in “Manchukuo”. He said he did not understand on what grounds the British Consul General could complain, especially as on the whole he thought that the foreign consuls were treated considerately by the “Manchukuo” Government. He had also told the British Consul General that he intended to study this question more fully after which he would be in a better position to discuss it. Mr. Ohashi said that he could only give me the same answer as he had given the British Consul General.
I said that I wished to make it clear that I had not been instructed to make any protest, but I wished to discuss the matter in an endeavor to learn his attitude. Now that he had explained that it was the Finance Department and not the Foreign Office which had taken the action, and since he promised to give the subject study, I suggested that he would perhaps prefer postponing further discussion until my next visit to Hsinking. I added that while it was not within my province to advise him on policy I could not help feeling that such action accomplished nothing except cause needless irritation. I pointed out that for my part I was trying my best to establish friendly personal relations as widely as possible, and that I appreciated the sincere desire which I had generally encountered to reciprocate my attitude, which convinced me that there was a mutual advantage in such relations.
Mr. Ohashi said that he appreciated my friendly attitude, that he would carefully study the question in the light of what I had said, that he would be pleased to discuss this question more fully with me on the occasion of my next visit, and that he hoped I would feel free to talk over any matters with him fully and frankly.
[Page 276]I feel that no useful purpose would be served by discussing the subject with any one in the Department of Finance, but I shall not fail to report to the Legation the outcome of my next discussion on the subject with Mr. Ohashi.
In reference to the possibility suggested by Consul Grummon in his despatch to the Embassy of June 212 that the present policy of collecting duty on official supplies of foreign governments may be extended to the extent that such shipments may be refused entry into Manchuria even after payment of duty, I am inclined to believe that the statement attributed by the forwarding agent to an official of the Customs does not represent the views of his superiors, and while it might not be possible to obtain a reversal of policy on the matter of duty I feel satisfied that any difficulties which may arise at Dairen over the clearing of official supplies can be straightened out with Mr. Ohashi at Hsinking.
I may add that the supplies were received by me yesterday, and I understand from Consul Grummon that duty amounting to Yen 20.00 was paid by the forwarding agent and a receipt from the Customs sent to me.
Respectfully yours,