893.51 Salt Funds/169: Telegram
The Secretary of State to the Consul General at Shanghai (Gauss)
209. Your 371, March 9, 4 p.m. Please transmit the following telegram to Tokyo:
“Shanghai’s 371, March 9, 4 p.m. The Department suggests that in your discretion and following conference with your interested colleagues, you make an oral approach, supported by an aide-mémoire, to the Japanese Foreign Office in regard to this matter. It is suggested that you bring to the attention of the Japanese Government in detail but without divulging source the occurrences and situation described in paragraphs 2 and 3 of Shanghai’s telegram under reference and that you state (1) that American loans amounting to more than U. S. $15,000,000 are secured on the revenues of the Chinese salt administration (specifically, there are three loans: the American share of the Hukuang Loan, the so-called Chicago Bank Loan, and the Pacific Development Corporation Loan); (2) that arrangements were made early in 1937 for the servicing of those loans from salt revenues, with every prospect that payment would be made in full; and (3) that in as much as the prospects of servicing those loans are being adversely affected in consequence of the action in China of Japanese armed forces, we desire to bring to the attention of the Japanese Government the substantial American interest in the Chinese salt administration and to make full reservation in regard to American rights and interests.”76
Repeat to Hankow for the information of the Ambassador, referring to his 154, March 12, 10 a.m., and repeat also to Peiping.
- For text of aide-mémoire, dated March 19, to the Japanese Foreign Office, see Foreign Relations, Japan, 1931–1941, vol. i, p. 741; the British and French Embassies took similar action.↩