893.797 Manchuria/5

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

No. 950

Sir: Reference is made to despatch No. 189, December 2, 1935, from the Consul General at Mukden to the Ambassador at Peiping91 reporting discrimination against American automotive trucks in favor of Dowa trucks. A notation on the despatch indicates that a copy was transmitted to you.

In principle the Department believes that when there occur in Manchuria specific instances of discrimination against American trade and American products the record should be kept clear as to this Government’s continued interest in the effective maintenance of the principle of equal opportunity by bringing to the attention of the appropriate Japanese authorities the instances of such discriminatory treatment. The Department has noted that in the case discussed by the Consul General at Mukden, the Consul General does not regard the present time as opportune for the making of formal representations. Having in mind both this fact and the view with regard to principle that is expressed above, the Department raises for the consideration of and decision by the Embassy the question whether it might not be advisable for the Counselor or the First Secretary of the Embassy orally and informally to bring to the attention of the Japanese Foreign Office the fact that the Embassy has received information indicating that the Kwantung Army as well as railways and other organizations in Manchuria are placing obstacles in the way of the purchase of American trucks on a freely competitive basis.

Very truly yours,

For the Secretary of State:
William Phillips
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