893.6583/26
The Ambassador in China (Johnson) to the Secretary of State
[Received February 20, 1937.]
Sir: I have the honor to refer to the Embassy’s despatch No. 692 of September 4, 1936, on the subject of the formation of a vegetable oil monopoly, with which there was enclosed a copy of the Embassy’s note of the same date to the Ministry of Foreign Affairs on this subject.73 The Department will recall that the Embassy requested assurances that the legitimate trade of American firms engaged in the [Page 627] vegetable oil business would not suffer restraints as the result of the formation of the China Vegetable Oil Corporation, the officially sponsored organization. A reply has now been received from the Ministry of Foreign Affairs under date of December 15, 1936, a copy of the translation of which is enclosed.73a
The Department will note that the reply merely states that no restrictions have been imposed upon the legitimate trade of American citizens. In view of the representations already made by this Embassy and by the British Embassy, and the nature of the enclosed reply from the Ministry of Foreign Affairs, I feel that nothing further need be done until we have actual evidence of restraints upon American firms engaged in the vegetable oil business. I have accordingly requested the Consulates General at Hankow and Shanghai to follow the situation closely and to notify the Embassy of any evidence that the business of American firms is suffering on account of the monopolistic activities of the China Vegetable Oil Corporation.
Respectfully yours,
Counselor of Embassy