893.61331/62: Telegram
The First Secretary of Embassy in China (Merrell) to the Secretary of State
[Received October 12—10:20 a.m.]
495. Embassy’s 463, September 25, 3 p.m. Peck at Nanking reported on October 165 that he was informed on the same date by the Foreign Office that a telegram had been sent to the Honan Provincial Government on September 26 “advising” that American merchants be permitted to purchase leaf tobacco. He further reported under date of October 5 that the Lienhwa Leaf Tobacco Company had received a telegram dated September 30 from the Honan Commission of Reconstruction stating that, if the company takes no action contrary to the treaties, it may purchase leaf tobacco in Honan Province. He now states, in a communication dated October 7,65 that he has been informed by the director of the Political Department of the Executive Yuan that, from what the latter had heard, it was his judgment that the project for a leaf tobacco company has been dropped. Peck endeavored to obtain further particulars, but the director appeared unwilling to go into details. It is presumed, however, on the basis of Peck’s conversation with the Director on September 15, that the latter had reference to the whole leaf tobacco monopoly project for the purchase and sale of leaf tobacco, and that the assurance he gave may be considered semiofficial.