893.506 Manchuria/36: Telegram

The Counselor of Embassy in China (Lockhart) to the Secretary of State

808. Department’s 137, July 24, 5 p.m., Mukden’s despatch No. 153, October 7th.76 Mukden now reports that Tsutsui of the Administrative [Page 949] Office of the Hsinking Foreign Affairs Bureau does not offer any satisfactory information in regard to the probable situation after the enactment of the insurance law and that both Tsutsui and Ohashi are evidently embarrassed by the necessity of defending the insurance and exchange control laws which are in conflict with Open Door policy. Both hold that the two laws are part of national policy. Mukden Consulate General shares belief of Embassy at Tokyo that representations to the Manchukuo and Japanese Governments will probably be ineffectual on the broad basis of principles involved, but this Embassy nevertheless believes that it might be necessary to obtain from time to time by informal local representations particular modifications (or interpretations) of the laws in question which would be beneficial to American interests. It would seem that the above-mentioned laws and the law concerning juridicial persons (Embassy’s 800, December 3, 5 p.m.) fall in the same general category.

The Department’s instructions are requested, particularly as to whether new instructions shall be issued to Mukden or the matter be permitted to rest pending new developments.

Repeated to Tokyo and the Embassy at Hankow.

Lockhart
  1. Neither printed.