761.93 Manchuria/97: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received November 22—12:54 p.m.]
775. Following from Harbin:
“30, November 18, 2 p.m. The Chief of the Russian Section of the Hsinking Foreign Affairs Bureau, a Japanese diplomat, told Benninghoff61 yesterday that relations between Manchukuo and [Page 938] Soviet Russia were better than they had been for some time and that as a result of negotiations in Harbin culminating October 27, the Russians were permitted to raise and take back their armed launch sunk in the Amur River July 1 by Japanese troops, and a mutual exchange of prisoners was effected. The same informant was of the opinion that both sides were being more conciliatory than heretofore in an effort to avoid serious developments.
The same informant confirmed newspaper reports that Mr. Yoshi-suke Ayukawa, President of the Japan Industry Company (see page 19 Mukden’s review for October62) will shortly proceed to the United States to seek capital for the newly created Manchuria Heavy Industries Company.
He then said, speaking on a matter appertaining to another Government department, that his colleagues were greatly interested in an apparent “revolution” in policy regarding foreign capital, for they had assumed that the steadfast policy of Manchukuo of denying any foreign control over foreign investments will have to be abandoned. The probable attitude of the American Government was also creating great interest.
Repeated to Tokyo, by hand to Mukden”.
By hand to Nanking.