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

No. 890

Sir: I have the honor to refer to my despatch No. 729 of September 16, 1936, in regard to the proposed leaf tobacco monopoly, and to enclose for the information of the Department a copy in English translation of a formal note received from the Foreign Office under date November 9, in reply to the Embassy’s note of June 1, 1936,71 denying the validity of the arguments adduced by the Embassy against the establishment of the monopoly organization.

The attitude of the British and Japanese Embassies in regard to the matter will be ascertained, and the Consulate General at Shanghai is being instructed to report on recent developments. A copy of that instruction is enclosed.72 A new note will be sent to the Foreign Office if the information obtained makes that line of action appear desirable.

Respectfully yours,

For the Ambassador:
F. P. Lockhart

Counselor of Embassy
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